*Recourse Factoring calls for “Separate Presentation” in the balance sheet of a company’s statutory accounts. The liability to the Factor is shown as a short-term creditor, because in effect it is a loan from the Factor. The Sales ledger debtors are shown under “current assets” in the usual way. The Factoring fees and discount fees [read more]
Sep 192011
How to input a batch sales invoice in Sage:
(This is for invoices and credit notes generated outside of Sage)
From the “Customers” module, click on “invoice” – which is usually a “button” icon near the top.
A pop up window entitled “Batch Customer Invoices” should appear. For each sales invoice, input as follows (tab between fields):
A/C – this is the Customer Account reference, if you do not know it, click on the downward arrow on the right of that field to bring up a drop-down list of all the customers. A new customer can also be set up from this drop-down list by clicking on “new”, you will be brought into the “Customer Record” to enter a new customer’s details.
Date – the sales invoice date in dd/mm/yyyy format (the default is current date)
Ref – the sales invoice number (hopefully a unique sequential number!)
Ex-Ref – this is an optional additional reference field which can be left blank if not required.
N/C – this is the nominal code for the type of sale (typically in the 4000 – 4999 range). (Customer records can be set up to specify a default sales code for that particular customer. If this has been done, this field will be completed automatically, although it may still be over-written). You may also click the downward arrow to access the drop down list.
Dept – if you are using “departments” in Sage, then input the appropriate department number (or select from the drop-down list by clicking on the downward arrow). If you are not using “departments”, then leave the field as it’s default value of 0.
Project Ref - similarly, if you are using “projects” in Sage, then input the appropriate project code (or select from the drop-down list). If you are not using “projects”, then leave the field blank, which is the default.
Details – this is a text field for you to write a brief but meaningful description.,
Net – this is the net amount (excluding VAT) if you are VAT registered.
T/C – this is the VAT code. If you are VAT registered, it’s usually T1 or T0 (but there are others – see previous post on Sage VAT codes). If you are not VAT-registered, then use T9.
VAT – this is the VAT amount, which Sage calculates from the net amount and the tax code. Occasionally, there are rounding errors, which can be corrected by overtyping the amount. If you are not VAT registered, then this field must be zero.
When you are finished, click on “Save” in the bottom left of the window.
To input a credit note in Sage, the process is almost identical, although you will need to click on “credit“ from the Customer Module. All entries will be in red, to signify that you are entering a credit note rather than an invoice.
Note that sales invoices and credit notes entered into Sage in this manner will NOT be available in the “Invoicing” module.
 Advantages and Disadvantages of Factoring*Advantages of Factoring It is a quick boost to cash flow (assuming that the Factor’s conditions can be met) Some customers take Factors more seriously and pay quicker (also, the reverse is true) Non-recourse Factoring can protect against bad debts. Factors will credit check your customers which will help reduce bad-debts. Some Factors will withhold [read more] |
|
 Bookkeeping for Factoring*It’s advisable to treat the Factoring Account as a bank account. Treat all withdrawals of funds from the Factor to the business’s own bank account as a bank transfer. The sales ledger in the bookkeeping should mirror that of the Factor’s Sales ledger. This means entering all sales invoices and customer payments to the relevent [read more] |
 The Factoring Process* Every time a sales invoice is raised, a copy must be sent to the Factor as well as to the customer. (Some Factors will also raise the sales invoices, which would cut out this step). The sales invoice is marked as being factored, and the customer is required to pay the Factor direct. The business can [read more] |
 How Debt Factoring Works*Factoring or Debt Factoring typically used by business to help cash flow. Factoring involves a business selling it’s sales invoices to a Factoring company, at a discount. The business is then able to “draw down” cash against the sales invoices and the Factor (as Factoring companies are known) collects the money from the business’s customers, [read more] |
 Internet Presence*HappyAccountant.com is the accounting, bookkeeping and tax blog from Figurate Ltd. The company has a main website, a Linked In profile, a Facebook page and I have a personal Linked In Profile and I tweet for the company under the @Figurate handle. (The blog also has it’s own Twitter feed.) In addition to this, I occasionally [read more] |
