Invoice factoring

1

Hi,

I’ve been trying to make invoice factoring work in Manager.io but copying the steps for the treatment of a loan doesn’t work for me.

Scenario:

  1. I invoice customer for $100
  2. I sell the $100 invoice to a factor (recourse factoring - I’m responsible for collecting payment)
  3. I get $80 in cash right now and I owe the factor $80 + $5 in interest
  4. A month later, the customer pays the factor $100
  5. The factor pays me $15 ($20-$5)

Issue: When I try to create a receipt for $80, I can’t choose “Factoring payable” liability account in the line item account drop down. I’d rather not use journal entry if there exists a feature to create the transactions.

How do I handle this scenario in Manager?

2

Did you create this account?

If so, then please share the Edit screen of this account

3

I found the issue, there was another account with the same name that’s a bank account. I deleted all the accounts with the same name and recreated “Notes payable - Factor”. It works now.

working
working927×402 29.3 KB

1 Like
4

Thanks for the update.

I’m glad you got this sorted out.