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ReportHow do i do the process of factoring or discounting a customer invoice through Great Plains
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How do i do the process of factoring or discounting a customer invoice through Great Plains
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Dear Ian,
Good day to you
Thank you very much for the reply. Actually we are also following a manual procedure. But what I was looking forward to was a factoring functionality.
I think we need to write to Microsoft for this atleast in the next release.
Thanking you
Regards
Niju David
No Factor functionality tht I can find exists in standard GP for this.
What would be needed (and would probably be a very good addition to GP given the current business climate) would be factoring functionality somewhat similar to Witholding Tax...except for debtors.
To manually handle the transaction, maybe you could consider the following:
The above depends on the Factor company paying you the net amount after they have collected the debt.
If they invoice you for the 20.00, and they probably will, and you want to record it, which you should...you could do the following:
The above process leaves your GL correct: No Receviable, No Payable, Sales of 100.00, 80.00 in the bank, 20.00 in a Factor expenses account in the P&L.
You could also look at using settlement discounts, or write offs when you apply the 80.00 payment to the 100.00 invoice...but from an audit perspective, I would go with the clearly defined document process above...as you are recording exactly the underlying transactions.
Anyone think any different? Or is there any specific software available for this or functionality that could be 'bent' to accommodate the above?
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