Factoring a Bill

[Eric Morey]

On Thu, 2011-06-23 at 16:47 -0400, Andres Stickar wrote:
> In the normal operation, I bill a client and enter the bill in the system
> with a due date to 30 days.
> But in the real world, if I need the money before the due date, I can
> negotiate it in a factoring enterprise or a Bank.\

I use to work for the largest factoring company in the USA and have a
bit of experience with this type of financing. I know enough to know
that unless the factorer is providing accounts receivable and credit
analysis services for your company, there are often cheaper forms of
financing available for merchants. But this is not what you asked
about. 

> I release the bill to an enterprise or  Bank who give my the money today ,
> but not all, and wait to the due date (30 days)

I'm not sure if english is your native language and you improperly typed
your sentence or if something is lost in translation, but the meaning of
your statement is unclear.

> After 30 days they receive the all amount of the original bill.
> Now the problem. How can I register this.

First, talk to an accountant. How you book this transaction probably
depends on whether this is a true factoring deal or an asset based loan.
If it's a factoring deal you sold your account(s) receivable asset
(probably for less than the original receivable). So you would credit
A/R: customer x, Debit Cash and some Expense Account (maybe Receivables
Factoring Expense):

Cash				91
Receivables Factoring Expense	 9
	A/R: Customer x			100


I hope this helps.

Eric...