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invoice financing within sage

I run the accounts within Sage LIne 50.

I may be about to get involved with Invoice Financing.

Is there a whole bunch of things i need to know to process this ?

Is it payments to account leaving the balance outstanding until the final receipt or something completely different.

I haven't been involved in financing before.

Advice would be appreciated.

Thank you. Heather.

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By Ditta
18th May 2012 16:36

invoice financing within sage

 

The finance is secured against the invoiced debt.  The finance is increased/decreased based on the debt.  Invoices are daily or weekly uploaded into the bank’s system and amounts received are banked into invoice discounting bank account.

 

Monthly you will need to produce debtor aging plus Reconciliation for the bank.  You need to make sure

 

only the qualifying invoices are included in the debtor aging (only the invoices that are uploaded into the bank are included in this aging/reconciliation).  Certain sales may be excluded (sales outside UK/EU).Only the payment receipts for qualifying invoices are paid into invoice discounting account.If there are sales outside UK to EU members you will need two ledgers.  If operating one ledger for EUR and Sterling, you will get fx differences you need to account for.

 

I have done Invoice financing in SAP Business One.  However, all calculations were done in excel.  Just make sure you understand the finance agreement between the bank and your client. The bank will be watching very closely and will reduce the finance availability if they find errors.

 

I hope this helps.

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