How to account for invoice factoring
Below we go through instructions on how to bookkeep an invoice purchase. Further down in the document you will also find steps for how to handle invoices that have been managed via Invoier but without financing.
Invoice factoring
When you have sold an invoice (also known as invoice discounting) via Invoier and received payment of the financed amount, it is time to record the sale of the invoice. You do this by booking the received amount (for which the invoice was sold) via your account (e.g. Plusgiro: 1920 or Bankgiro: 1930) and thereby booking off the trade receivable against the account for trade receivables (1511).
The factoring fee is posted to account (6064), Factoring costs. Input VAT on factoring costs is debited to account (2641) using code 25%
| Debit | Credit | ||
|---|---|---|---|
| Account | Amount | Account | Amount |
| 1920 | 98 750 | 1511 | 100 000 |
| 6064 | 1 000 | ||
| 2641 | 250 | ||
You receive SEK 98,750 from Invoier via the giro [1920], thereby also clearing the trade receivable of SEK 100,000 in the trade receivables account [1511]. Invoier charges a fee of SEK 1,000, which is booked to account [6064], Factoring costs. The incoming VAT for the factoring cost is debited to account [2641] with SEK 250.
Post invoice that has not been purchased
If your invoice has been processed via Invoier, but without being purchased (i.e. processed without financing), you post it as follows:
When you have received payment for an invoice that was handled via Invoier but without being financed (also known as the invoice service), it is time to bookkeep the payment of the invoice. You do this by booking the received amount (which your customer has paid and which you have now received from Invoier) via your account (e.g. Plusgiro: 1920 or Bankgiro: 1930) and thereby booking off the trade receivable against the trade receivables account (1511).
The service charge, corresponding to Invoier’s handling fee, is posted to account (6064), Factoring costs. Input VAT on the service charge is debited from account (2641) using code 25%
| Debit | Credit | ||
|---|---|---|---|
| Account | Amount | Account | Amount |
| 1920 | 99 937,50 | 1511 | 100 000 |
| 6064 | 50 | ||
| 2641 | 12,50 | ||
You receive SEK 99,937.50 from your Invoier via the Plusgiro [1920] where Invoier has already deducted a service fee for invoice processing. You therefore clear the trade receivable of SEK 100,000 in the trade receivables account [1511] while simultaneously booking Invoier's service fee of SEK 50, which is booked to account [6064], Factoring costs. The incoming VAT for the factoring cost is debited to account [2641] with SEK 12.50.
We are happy to help if you have any questions or concerns regarding the bookkeeping of Invoier's factoring services. Please do not hesitate to contact us at support@invoier.com