Invoice Discounting Guide

Transcription

1 Invoice Discounting Guide Invoice Finance

2 Why are we providing this guide? As part of our commitment to treating clients fairly we want to provide you with information which is clear and gives you a good understanding of our product. This guide provides an overview of the key features of your Invoice Discounting facility. Capitalised words carry the same meaning as defined in the Invoice Discounting Terms or Agreement between us. FacFlow how it works We realise you want to manage your account as quickly and easily as possible. With this in mind we have designed FacFlow a system that actually reduces your administration burden. Benefits of FacFlow Fast you can usually make requests and receive payments on the same working day. Intuitive the system is well designed and easy to use. Robust FacFlow can handle large volumes with ease. Thorough FacFlow is extremely comprehensive and can produce full reports. Well supported most customers who call our Web business support team have their queries resolved by the end of the call. Accredited FacFlow has been accredited by the Institute for Chartered Accountants in England and Wales (ICAEW), under its IT Accredited Product Scheme. Visit the ICAEW website for further information at Online use FacFlow anywhere you have an internet connection, anytime. Submitting Invoices, Payments and Credits You must Notify us on a weekly basis as a minimum of all changes to your sales ledger including invoices, credit notes, cash, settlement discount and any other adjustments e.g. bad debt write-off. This is done through FacFlow. FacFlow will then be updated on the same day so you can see exactly what funds you have available to draw down. Payments All payments received by you must be Notified to us immediately. Cheques need to be banked into your Nominated Account and you must Notify us using the paying-in slip option on FacFlow. 2 Invoice Discounting Guide November 2013

3 What affects your ability to draw money down? 1. Reserves Reserves are withheld from the payment availability calculation. Reserves may include: outstanding invoices which are outside the Funding Period (typically 90 days from the end of the month of invoice) or invoices in dispute or subject to legal action Customer balances which have exceeded the Limit set by us Customer balances which have exceeded any Concentration Limit set by us invoices where Reserves have been applied at our last audit. Reserves can be viewed on the FacFlow Payment Availability Screen. 2. Funding or Credit Limit exceeded The Funding or Credit Limit is a percentage or amount set by us to denote the maximum sales ledger balance that we will consider for funding purposes on any particular Customer. When the balance outstanding on a Customer s account, as shown on your monthly aged analysis of Debts, exceeds the Limit, the difference will be treated as a Reserve. 3. Concentration Limit exceeded The Concentration Limit (where applicable) is a percentage specified by us of the total outstanding sales ledger balances from all your Customers. If any individual Customer balance exceeds the Concentration Limit percentage, the amount in excess will be treated as a Reserve. 4. Audit Reserves Audit Reserves are set by us as part of our ongoing monitoring of the Invoice Discounting facility. Typically they would reflect any discrepancies in your sales ledger accounting records or lack of proof of Debt. Audit Reserves are included within the Reserve. 5. Contra Reserves Where you supply and order goods from the same Customer we will reserve the lesser of the Sales Ledger balance and the Purchase Ledger balance for that particular account. Invoice Discounting Guide November

4 How can I check what credits and debits have been made to the facility? Client Accounting Two statements are produced each calendar month reflecting your accounts with us, the Receivables Purchased Account and the Memorandum Discounting Statement. Summaries of both the accounts give an overview of the information that is contained within them. The details of both statements can be viewed in the Accounts screen or from the Reports menu in FacFlow. Receivables Purchased Account The Receivables Purchased Account will reflect the prospective purchase price of all invoices Notified to us. Accounting entries include: Notifications invoices Notified/offered to us Credit notes and sales ledger adjustments Payments made to you by us Memorandum Discounting Statement The Memorandum Discounting Statement (MDS) is a monthly summary of the balance of our funds drawn down by you and the charges applied to your account. This includes the discounting charge that is calculated and debited daily. 4 Invoice Discounting Guide November 2013

5 Checklist of information required by RBS Invoice Finance Daily You must bank all Customer Remittances (cash, cheques, etc) received in payment of invoices Notified to us into your RBS Invoice Finance Account. Under no circumstances must you pay these Remittances into any other account. Weekly Send a Notification detailing all changes to your sales ledger that week, including invoices, credit notes, cash, settlement discount and any other adjustments, e.g. bad debt write-off. Monthly You must close an accounting period on FacFlow by the 15th of the following month, i.e. August s accounting period must be closed by 15 September. You need to complete the month-end sales reconciliation by checking your own accounting records, i.e. Aged Debt Report, against the RBS Invoice Finance Sales Ledger Control Account. An Aged Debt Report must be sent to your Reconciliation Officer by the date set out in your agreement to avoid payments being suspended. Any Non-notifiable debts should be highlighted along with a copy of your Purchase Ledger. A copy of your monthly management accounts must be sent to your Relationship Manager by the 30th of the following month (unless otherwise specified), i.e. August s management accounts must be sent by 30 September. Quarterly (unless otherwise specified) A Customer Name and Address list, along with either Customer statements or Open Item Aged Debt Analysis must be sent to your Relationship Manager. Annually (unless otherwise specified) Send Audited Accounts to your Relationship Manager within ten months of your financial year end. Invoice Discounting Guide November

6 Monthly reconciliation help guide Listed below are a few areas to check should you have a reconciliation difference: 1. Check your cut-off date at month-end. Have you allowed for items in transit? 2. Does your Aged Debtor s report add up correctly, including any unallocated cash? 3. Do your month-end statements show that we have processed everything that you have sent us? 4. If there are any excluded accounts/invoices, have these changed since last month? Have items relating to these accounts been input on FacFlow by accident? 5. If customers have paid by BACS into the Trust Account at month-end, have you posted these to your ledger? 6. Do any remittances credited to your own bank account need transferring to the Trust Account? 7. Have all unpaid cheques or refunds to customers been accounted for correctly? 8. Have you notified us of all customer settlement discounts you have allowed? 9. Have you notified us of all journal adjustments and write-offs you have applied to your ledger? 10. Have all currency exchange differences been accounted for? 11. Are all the invoices in the correct month on FacFlow? 12. Have you re-applied any returned customer cheques? Invoice Discounting Client Helpdesk Our helpdesk is available to answer queries concerning: payslip adjustments, represented cheques, processing issues and general queries in relation to monies coming in from either the UK or abroad. Our dedicated team are available Monday to Friday between the hours of and can be contacted on (Text Relay ). 6 Invoice Discounting Guide November 2013

7 Reports The reports available from FacFlow are listed below. By clicking on Reports, FacFlow will guide you through the information needed, such as date ranges or specific parameters for a search. Reports are in two categories: Standard: Payment Availability Sales Ledger Control Month-End Statement Selective Sales Ledger Transactions Receivables Purchased Month-End Statement Selective Receivables Purchased Transactions Memorandum Discounting Month-End Statement Selective Memorandum Discounting Statement Transactions Daily Balances and Discounting Charges Transaction Summary Report Client Advices Report Saved: Any reports run and saved by you for future use The Help screens may be used to access a description of the above reports. These screens will also explain how to filter and sort through the information. Invoice Discounting Guide November

8 RBS Invoice Finance Limited Registered office: Smith House, Elmwood Avenue, Feltham, Middlesex TW13 7QD Registered in England No RBS /13