When someone uses a finance company to purchase goods from you, the finance company may:

  1. Charge the supplier 
    1. A commission
    2. Booking fees
  2. Charge the customer 
    1. Booking fees
    2. Finance charges
    3. Interest

If only people could use real cash...


How to understand this transaction better.


  1. You sell the customer a $4,000 pool table
  2. They use QCard to pay for it
  3. You send a copy of the invoice to QCard and they put $4,000 less a commission into your QCard Account
  4. Technically the customer has paid you in full via the fiance company.
    To process this transaction, here are the entries to make
    1. You should have already set up QCard as a Bank Account in your Chart of Accounts
      Cash Book > COA + Accrual > Accounts

    2. Also add an account code to record the Finance Charges


    3. Receipt the full payment against the invoice or through the debtors ledger if the invoice is closed.



    4. The transaction will be a 'DIRECT CREDIT'


      You have now delat with the customers transactions, recognised the GST components, and completed the paper work. Now there is just one thing to recognise, the finance company charged you a transaction fee/commission.

    5. Transaction Fee/Commission
      What ever the fiance company charge you for using their service, it is not a reduction in sales. It is a direct cost of sales and the transaction/s can be recorded in the finance company bank account.


      In the above example we have processed two transactions:
      a) Add transaction for the COMMISSION ON INVOICE


      b) Transfer the balance to our main bank account


      It is a good idea to add more detail the transaction description


This completes the processing of the fiance transction.