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Enter commission on inter-bank transfers

The Sage200 documentation says that on an inter-bank transfer you can enter the value of any commission charged.  This is NOT TRUE.  It appears you can only enter 'commission' on a transaction between banks of different currencies - which is in fact a form of exchange rate difference.

Our customer uses factoring for some of their sales receipts.  When they submit the list of invoices to be factored to the agency, they are recorded as having been 'paid' in the sales ledger by a bank account specifically for the factoring agency.  When the factoring agency pays the company, they deduct a commission - but this commission cannot be recorded as part of the inter-bank transfer.

Commission is NOT dependent upon foreign exchange transactions.  Our customer operate factoring in both euros as well as sterling, as well as having bank accounts in euros, sterling and dollars - and have 'bank accounts' for monies due / expected from American Express and other card companies.

This is not really just an idea - it is a business issue that needs fixing.

Chris in the UK
  • in reply to Chris in the UK

    Understood, but it's also the customers data & the responsibility lies with them to maintain accurate records not the business partner or Sage

  • in reply to Ian Makinson

    Completely understood Ian - and I have done this for previous customers.  Then I came across a customer who submitted year end accounts to their auditors with a petty cash account that was overdrawn!  And now this customer admits to have never reconciled their factoring accounts and needs TWO dummy currencies - GBP and EUR.  I cannot trust them to keep the exchange rate tables correct on the dummy EUR currency.  So my 'plan B' was to try and tell Sage that their software does not perform in accordance with the documentation!  

  • Why not just set up a dummy GBP currency for the 'factored' account & then the inter account transfer will allow entry of a commission value? the commission entry referred to has always (dating back from the business rules in the Line 100 days) been the commission charge in addition to the exchange rate gain or loss

  • Replying to Stu Mc: Conceptually the 'bug' is in the documentation and the use of the word 'commission' - because commission obviously does not just apply to foreign transactions.  Correcting the documentation in this case does not serve a useful purpose for our customer.  In truth I would expect to describe this item as a design fault - and therefore is it an 'idea' that such faults be corrected?

  • Replying to Geoff Turner: VATability depends upon the arrangements with the factoring agency.  Our customer is trying to get the cost of factoring close to the sales order profitability calculation - and they factor big invoices not small ones, and not always particular customers (although this is an option for bad payers).

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