Invoice discounting

We are using invoice discounting we sell the invoice to a company our client pays the company, the invoice looks the same except it  has the invoice discounting companies bank details on it. The money we get paid does not match what goes into our bank account but our client has paid the full amount to the invoice discounting company. We are paid by the discounting company less fees etc. What is the best way to record this please from a book keeping point of view! Thanks very much!

  1. Sorry I meant to say that the money we get paid into the bank account from the Invoice Discounters does not match whats on the invoice.

1 answer

Peter Connor Staff November 17, 2015

I’m not sure what the best way to handle that is. Normally if you get an amount lower than the invoice you issue a credit note and either refund or, discount. 
Do you have an account Yvonne?

  1. Hi Pete,

    I do have an account. Its not really a refund or discount. I was thinking I might add in a bill from the discounting company for the money that they deducted from the traded invoices and mark off our client as paid in full?
    Just wondering what the best practice was to record!


  2. Peter Connor November 18, 2015
    Hi Yvonne,

    It's a fringe payment so outside of Bullets workflows. You'll need to use the journal entries to modify the invoice. Unless you're familiar with them I wouldn't use them, you can invite your accountant in to make the modification. Should only take a couple of minutes.

  3. Thanks for that Pete, Ill leave it to the accountant so.

  4. Peter Connor November 18, 2015
    I think it's the best thing to do. You know can talk to us by clicking the (?) on the top nav.
  5. Perfect Ill do that thanks!

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