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:

Customer account	Invoice number	Amount due
ACC1	001	£1000

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.

 NOTE: These values are given as an example, visit Satago for a more accurate view of the fees charged. 

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Create the trust account bank account

1. Click Bank accounts, click the New/edit drop-down, then click 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. If you're using the Sage default Nominal Ledger structure, we recommend you use a number within the range of 1200 to 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, click OB then when prompted to save the record, click Yes.
   Minimum Limit	If required, enter an amount you don't want the balance of this account to fall below. If the amount of money you have in this account falls below the amount specified here, then the bank appears in red in the Bank accounts window.
   A/C Type	From the drop-down 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 check box if you don't want to run a bank reconciliation for this account.

   To add further details to your Bank Account, click the relevant tab from the Bank Record window and complete as required.
3. Click Save, then click Close.

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

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Create a fees nominal code

1. Click Nominal codes, then click 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. Click Save then click Close.

 NOTE: You should now check your Nominal Ledger Chart of Accounts to ensure that the nominal code you've created is included within the appropriate section of the Profit and Loss report. For further information about this, please refer to this guide.

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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. Click Bank accounts, select the Trust bank account then click 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. Click Save, then click 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. 

 TIP: A new layout has been added in v29 that includes the bank account entered within the payment tab of the Invoice. Open the bank details guide >

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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. Click Bank accounts, select the Trust bank account then click 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. Click Save, then click Close.

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Fees charged for Invoice Finance

You now need to record the fees charged by Satago.

1. Click Bank accounts then from the Payments drop-down, click 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. Click Save, then click Close.

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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. Click Bank accounts, select the trust bank account, then click 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. Click Save, then click Close.

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