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Agustin Bax
February 27, 2024
Question

Factoring Fees

  • February 27, 2024
  • 2 replies
  • 0 views

I am a bookkeeper for a trucking company and I need your help to solve a couple of things I don't know how to do:

1- the company started factoring with a service station called Loves. They buy the invoices from us and charge us a 2% fee. Then my client pays Loves directly.
I want to know how to correctly register the payment from Loves to my checking account. So far what I am doing is putting a 2% "discount amount" on each invoice so that I match the amounts each time Loves deposits. Is it correct to do it that way? Because in the P&L report I see the 2% discount as a "discount given" and not as a "factoring fee".

2- Loves gave me a fuel card for my driver to use and all the fuel that I charge will be deducted from the payments they make to me for the invoices that I sold to them. How do I register every time my driver fills up with diesel?
Thank you very much!

2 replies

Candice C
Candice C
February 28, 2024

Good evening, @Agustin Bax.

 

It's great to see you back in the Community. 

 

Since you're asking these two detailed questions, I recommend contacting our Customer Support Team for further assistance. They'll be able to get on a screen share tool to review your account with you and give you the steps the business needs. Here's how: 

 

  1. Go to the Help icon in the top right-hand corner. 
  2. Press the Contact Us button. 
  3. Enter your question and tap Let's talk. 
  4. Scroll down and choose to Get a callback. 

 

It's that easy! 

 

I'm only a post away if you need me again. Bye for now! 

Rainflurry
Rainflurry
February 28, 2024

@Agustin Bax 

 

1) You can set up a factoring fee service item mapped to a Factoring Fee expense account and add that item as a negative amount on each invoice sold to Loves.  Or, you can create credit memos with the 2% factoring fee service item and apply that to the invoices.  Either way will book the 2% as an expense instead of a discount.  

 

2) Set up the fuel card as a credit card and record the fuel expense to that card each time the driver buys fuel.  Then, set up a service item called 'Fuel Expense Deduction' (or something that makes sense to you) and under 'Income account' choose the fuel card credit card.  When Loves deducts the fuel charges from the invoices, add the Fuel Expense Deduction as a negative amount.  That will reduce the amount due on the invoice and, at the same time, reduce the balance on the card.  

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