HSBC factoring

This topic explains how to set up factoring and report on it within IRIS Elements Cashbook. Although our report is titled HSBC factoring it can be used for other factoring services.

Setup

To deal with factoring in IRIS Elements Cashbook you should setup a new bank account for use with factoring.

  1. Go to Bank > Add New Account

  2. Enter details into the following three fields here:

Account Name – give this account a unique identifying name, i.e. “Factoring Account”.

Starting Date – the starting date should be before the first transaction, i.e. “01/01/1970”

Starting Balance – this should be “0.00”

  1. Select Update.

Recording Sales and Payments

When recording payments against Invoices, under the payment details section of the Invoice use the Bank Account drop-down menu to select your new factoring account. Payments will now be recorded as going into this account.

When you receive funds from the factoring company you should Transfer Money from that account to your main account.

  1. Go to Bank > Transfer Money

  2. Enter the Date that the amount was transferred from the factoring company to yourself

  3. Enter in the Amount withdrawn or transferred

  4. Enter the factoring account in the From field.

  5. In the To field enter your business account where you received the money

  6. Enter a Comment to make it easy to reconcile. Enter in something like ‘Factoring Payment January 2013′

  7. Select Create Transfer.

To record fees for the factoring:

  1. Go to Bank > View/Add Transactions (of the factoring account).

  2. Use the add a transaction fields at the top of the page to add a new Money Out Transaction with the type of bank charge for the amount of the fees.

Reporting

If you use HSBC for Invoice Factoring you can generate the required files direct from within IRIS KashFlow.

You’ll first need to enter your customers client numbers:

  1. Go to Settings > Custom Customer Fields

  2. Name the first field Client Number and select Update.

  3. Go to Customers > select the Customer > Other Info (or CIS and Other Info) > enter in the customers client number

You can now run the HSBC factoring report:

  1. Go to Reports > Income Reports > HSBC Factoring.

  2. Using the fields here:

  3. Enter the Client Number - this is your client number for HSBC.

  4. Enter your Password for HSBC Factoring Service

  5. Enter a Start Date and End Date.

  6. Select Create Text File. This will download the required file to your computer for submission to HSBC.