If a Company is factoring it's debts when is the receipt date for cash accounting? Is it when they receive the money from the factor or from the client. Is the receipt from the factor classified as a finance receipt or a sales receipt?
Thanks in anticipation.
Pete T
Replies (2)
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Yes, Euan is correct
I can add little to Euan's concise answer except this came up at a VAT inspection and the officer agreed that the money from the factor was, in effect, a loan that was satisfied by the customer's payment of the invoice.