How do I Finance Clothing Items?

Summary

This article will guide you through financing out items of clothing to a finance company for a customer.

More Information

In order to finance clothing items out of the system you will need to:

Create a Finance Company Control Centre

You will need to create a new Nominal Centre for each Finance Company that you will be dealing with when issuing finance on Clothing items.

• To create a Finance Control Centre you will need to:
• Go to " Nominal Ledger Maintenance Options Centre Maintenance Insert/Amend/Delete Centres".
• Click [Add] or press <F6>.
• On "Code:" enter in a code for the Finance Company. i.e. - 19851
• On "Name:" enter a name for the Finance Company. i.e. - Black Horse Clothing Fin. Ctrl.
• Set the "B/S" to be 'Asset/Liability'.

  You could enable the "Reconciled?" check box if you want to reconcile the amounts going into the centre.

• If you sub divide your reports by department, then you may group certain centres together, if so enter this into the:
  • "Group:".
  • "Division 1:".
  • "Division 2:".
  • "Division 3:".
  • "Division 4:".
• Once complete click on [Done] or press <Esc> and click [Accept].

Selling Clothing Out on Finance

Now that you have created you centre(s) and have had agreed with the customer and finance company that you will be selling clothing items to the customer on finance and have filled in all forms necessary for the finance company you will need to:

• Create a Sell the clothes out over the counter as you would do normally making sure that the items are being sold to the customers account, not to be sold to a "Cash Sale Account".
• On the "Payments" screen enter in any payment being taken from the customer. i.e. - Invoice total is £1200, Customer is paying £200 via Credit Card, £1000 is being done on Finance. So you would ender in £200 against Credit Card payment option.
• Now against the "K" enter in the centre you created for the relevant finance company. i.e. - 19851
  • Enter in the amount to be financed in the "Paid" field. i.e. - As above this would be £1000.
  • Against the "Comment" field enter in either the Reference for the Finance from the Finance Company and/or the customers account code. i.e. - ABC123XY-SMI001. "ABC123XYZ" would be the reference code from the finance company and "SMI001" wuld be my customers account code.'

    The reason for doing this is to make your life easier when auditing the payments done via this centre and for whom/what they were done for.

• Once happy complete the transaction as per normal by clicking [Post] or pressing <F7>.

This will pay the invoice off the customers account and put the amount into the Finance Company Clothing Finance Contra Centre, this will need to be dealt with at a later date when the Finance Company pays you. See here for more details.

See Also

• How do I Deal with Settlement of Financed Clothing?
• Getting Started - Stock Control
• How do I find a stock code?
• How do I Find a Customer?
• Selling Parts over the Counter

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Keywords AND Misspellings

Finance, Clothing, Items, Sell, Invoice, Company, Item, Financing