How do I post payments from finance companies?
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Revision as of 21:13, 20 April 2020 by Katy Kitchen (talk | contribs) (Created page with "{{Incomplete}} == Summary == This article explains how to post payments received from a Finance company using {{SL}} Receipts. == More Information == When a unit sale deal...")
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Summary
This article explains how to post payments received from a Finance company using Sales Ledger Receipts.
More Information
When a unit sale deal has been financed the balance due from the finance company will be posted as an invoice to their customer account. When you receive payment this amount should be allocated to the invoice using Sales Ledger Receipts.
If the deal also involved a part exchange with outstanding finance with the same company, the payment you receive may be less this balance. This is known as a contra payment. The invoice for the settlement due will be on the relevant finance company supplier account on the Purchase Ledger.
- See Posting payments received for instructions on how to post the money received from the finance company.
- If the amount received is less any outstanding finance on the part exchange, follow the same article to pay off the remaining balance, i.e. the contra amount, to a suitable nominal code e.g. 'Z990' - Suspense Account.
- See this article for how to post the same amount against the Purchase Ledger invoice, to the same nominal code e.g. 'Z990' - Suspense Account.
 | Occasionally the contra amount may be less than the balance due on the supplier account e.g. if the customer has made another payment in the meantime. This may leave you with a credit balance on the supplier account. Pay this amount off to a suitable nominal code e.g. Unit Cost of Sales as this has had the effect of reducing your costs. |
See also
