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knowledge is power make an impact by learning more cause right now for more help at eight six six nine four five eight zero sevens factoring receivables in QuickBooks Online so we're looking at an accounts receivable aging detail all based on some invoices that were posted on March 1st and all of which we've sold to our factors so we want to get this recorded and as I mentioned in the write-up the temptation is going to be to receive payments on these invoices but that's not the correct thing to do because these invoices haven't actually been paid yet all you the clients still owe you the money so you definitely want to keep it on record in your accounting that the client still owe you this money and consider especially if your factor has recourse meaning they can force you to buy the invoice back if it doesn't collect get collected in a certain period of time then the client will definitely still owe you the money so the bottom line is this doesn't mean these invoices are paid in fact it makes the accounting very simple because all it means is that you've been loaned money by the factor granted these invoices kind of sit behind that loan as the basis for how the loan amount is arrived at and so on and and this'll make sense a if you've read the write-up and B as I show you how we do in fact record this part of the transaction so at this point you should have a report back from your factor that looks something like this granted this is somewhat simplified but essentially you need to be able to get this much information out of your factor they should itemize it by invoice number and sorry I'm in the wrong tab here let's stick with the purchase advance this is the first part so these are all the same invoices notice they total the thirty thousand ninety 709 notice that's my total here all right that should be the first thing you check is compare the invoices that are listed on the factors report with the invoices that you in fact so make sure that much agrees to start with then make sure you have this much information they usually will list your customer they will list your invoice number that you sent to your customer the invoice date the due date doesn't really matter that much if that's their but it's ideal just so you have all the information about each invoice in this report right most importantly we need the gross amount of each invoice itemized by invoice number so we know exactly what they're funding you for right there's going to be serve amount taken we're using the assumption here that they take out 20% right and you're gonna see later the assumption on the factored fee is that the fee is 10% meaning they're still gonna owe you some money...