Factoring a Bill
Eric Morey
eric at glodime.com
Thu Jun 23 22:49:47 EDT 2011
Again, you should talk to an accountant and show him your factoring
contract. This could all be terribly wrong or inadequate.
On Thu, Jun 23, 2011 at 6:38 PM, jldugger at gmail.com
<jldugger at gmail.com>wrote:
> >
> > I think you would take the bill in accounts recievable and make an
> > offsetting transaction, splitting off the advance to your cash
> > accounts, the reserve to a separate account, and the fees to an
> > expense account. Does this sound wrong?
> >
This is a simpler description than I came up with. It explains the part
that I believe Andres was asking about but I didn't understand.
On Thu, 2011-06-23 at 21:22 -0400, Andres Stickar wrote:
> If I sold my receivable I will have the original
> Bill for 100 and the new one for 91.
> In the balance I will have bills for $ 191, but this is not true.
> Or maybe you said something different and i didn't understand.
>
Once you sell your receivable it is legally not yours, you need to take
it off of your books by recording a countering transaction.
Expanding on my original sample transaction to account for the reserve:
Dr:
Cash 90
Receivables Factoring Expense 9
Cr:
A/R: Factoring Company 1 (The Reserve)
A/R: Customer x 100 (Offsetting transaction)
Then when the reserve is paid to you:
Dr:
Cash 1
Cr:
A/R: Factoring Company 1
More information about the gnucash-user
mailing list