If you use a financing company that pays you directly for purchases made by your customer, chances are they will short-pay the invoice, withholding the finance charges. So how do you deal with that in iPoint?
Finance charges are an expense, and as such, we don’t enter them in iPoint, because all payables are entered in QuickBooks. So here is the process.
- Sell the customer a $1,000 widget.
- Finance company pays $970 (withholding $30 finance charges)
- Enter the full payment in iPoint against the customer’s invoice in iPoint
- Sync the payment to Quickbooks
- In QuickBooks, create a deposit using the $1,000 payment that came from iPoint
- Manually add a second line to the deposit
- Received From – Your customer’s name
- From Account: pick an Expense account, probably “Finance Charge Expense.”
- Amount: Enter the finance charge as a negative amount
- Your deposit will now reflect $970 – the amount the finance company paid you.
- Your Finance Charge Expense account will track all the finance charges you incur.