The example

As we work through the steps, we'll use the following example.

We have the following invoices with a combined total of £1000 that we've assigned to Invoice Finance:

Satago initially sends you 80% of the outstanding debts, using our example this is £800.

They retain 20% of the debts until the customers pay the outstanding invoices.

In addition to this, they also charge you a fee. In this example, the fee is £70.

Create the trust account bank account

1. Select Bank accounts, select the New/edit dropdown, then press New.
2. In the boxes provided, enter the details for the new bank account, for example:
   

   A/C ref	Enter the nominal code you want to use for the trust bank account. For Sage's default Nominal Ledger structure, use a code between 1200 and 1299. A warning appears if you enter a nominal code outside the Chart of Accounts range.
   Nominal Name	Enter a description for this new bank account, for example, Trust Bank Account.
   Current Balance	If required, to enter an opening balance, press OB then when prompted to save the record, press Yes.
   Minimum Limit	If required, enter a minimum balance for this account. Sage highlights the bank in red in the Bank Accounts window when the balance falls below this amount.
   A/C Type	From the dropdown list, choose the type of account for the bank account.
   Currency	If you use the Foreign Trader option, choose the relevant currency for the account.
   No Bank Reconciliation	Select this checkbox if you don't want to run a bank reconciliation for this account.

   To add more details, select a tab in the Bank Record window and complete the fields as required.
3. Select Save, then press Close.

You've now set up the new bank account for invoice Finance.

Create a fees nominal code

1. Select Nominal codes, then press New.
2. Complete the Nominal Record window as follows:
   

   N/C	Enter the nominal code number you want to use. This should be in the Overheads section of the Profit and Loss.
   Name	Enter the name for the nominal code, for example, Invoice Finance Fees.

3. Select Save then Close.

Receive money from Satago

When Satago accepts the invoice, they send you an initial payment, in our example this is 80% of the value of the invoice. We can't record this against the invoice as the invoice is yet to be paid. Therefore, we transfer the value from the Trust bank account to the business bank account to show the receipt of the money.

1. Select Bank accounts, select the Trust bank account then press Bank transfer.
2. Enter the relevant information into the Bank Transfer window, for example:
   

   From	The nominal code and name of the bank you selected to move your money from, for example, the trust bank account, appears here.
   To	Enter the nominal code of the bank you want to receive the money from, for example, your main bank account.
   Date	Enter the date for the transfer.
   Details	Enter the details for the transfer, for example, 'Money from Satago Invoice Finance'.
   Payment Amount	Enter the amount you've received from Satago, in our example, 800.00.

3. Press Save, then Close.

You've now recorded the finance received from Satago in your software, if you haven't already, you should inform your customer about the trust bank account they need to pay the outstanding balance. 

Once your customer has paid Satago

Receive money from Satago

When you receive the second payment from Satago, this will be the remainder of the invoice amount minus the fees. In our example £200 - £70.  

1. Select Bank accounts, select the Trust bank account then press Bank transfer.
2. Enter the relevant information into the Bank Transfer window, for example:
   

   From	The nominal code and name of the bank you selected to move your money from, for example, the trust bank account, appears here.
   To	Enter the nominal code of the bank you want to receive the money from, for example, your main bank account.
   Date	Enter the date for the transfer.
   Details	Enter the details for the transfer, for example, 'Money from Satago Invoice Finance'.
   Payment Amount	Enter the amount you've received from Satago, in our example, 130.00.

3. Press Save, then Close.

Fees charged for Invoice Finance

You now need to record the fees charged by Satago.

1. Select Bank accounts then from the Payments drop-down, press Bank payment.
2. Enter the relevant information into the Bank Payments window, for example:
   

   Bank	Date	Ref	N/C	Details	Net	T/C	Tax
   Select your Trust Bank Account	Date	Ref	Invoice Finance fees nominal code	Details	Net amount, in our example, 70.00	Tax code, for example, T2	VAT Amount, for example, 0.00

3. Press Save, then Close.

Post the customer receipts

Satago may send you a statement detailing the date they received payment from the customer, which is the date you should use. If not, use the date you receive the payment from Satago.

1. Select Bank accounts, select the trust bank account, then select Customer receipt.
2. Complete the Customer Receipt window as follows:
   

   Bank A/C	Select your trust account
   A/C	Enter the account code of the required customer in our example, ACC1. All of the customer's outstanding transactions appear.
   Date	Enter the date you want to appear on the customer receipt. The current software date automatically appears but can be amended if required.
   Amount	Enter the value of the customer receipt, in our example, 1000.00.

   To allocate the money entered into the Amount box to the relevant invoices, enter the required value in the Receipt box of an invoice item. For example, enter 1000.00 against the relevant outstanding invoice.
3. Press Save, then Close.

 You've now recorded your transactions within Sage 50 Accounts.