Finance Fees/BuyDown: recommended workflowLast updated on 10/10/2022
The purpose of this article is to explain the proper buydown/financing fees workflow.
Things to know
Make sure to configure your account by following the steps below:
Enable separate print adjustment Invoices for another contact
Display income on Job Costing
After export, the credits that were created need to be manually applied to the invoice.
Go into the invoice for the original customer and choose to add payment, the screen will pop up with the invoice checked and at the bottom will show “Credits” Check the Journal Entry, and “Save and Close”
Go into the invoice for financing customer and choose to add payment, the screen will pop up with invoice checked and at the bottom will show “Credits” Check the Journal Entry, and “Save and Close”
Set up a financing/buydown workflow
You need to have the following general ledger accounts or create new General Ledger Accounts:
Financing Fees (Expense Account)
Note: There can be one GL per Financing Company (e.g. GreenSky Financing Fees, other company financing fees, etc.) or just one general financing fees account
Clearing Account (Other Current Liability Account)
You must have the following payment types:
Name: Finance Fee
Export as: Journal Entry
Map to: the new finance fee expense account you just created
More than one payment type can be created if you made multiple finance fee expense accounts
Name: GreenSky Financing (or the name of your financing company)
This is a customer-facing payment so be mindful of the name
Export as: Journal Entry
Map to: Clearing Account
More than one payment type can be created if you work with multiple financing companies
To create a new Payment Type, go to Settings > Payment and Invoice Types > Click Add.
You must have the following service in your Pricebook
Name: Financing Task
General Ledger Account: Clearing Account (one of the accounts created in step 1)
To add a new service to your Pricebook, click Pricebook > Services > + Add Service
Create a new customer for each financing company
Create an invoice and add a payment for the full amount financed.
Payment Type: GreenSky Financing (or other company) Note: This is the payment type that is mapped to the liability account
Amount: full amount financed
Create an adjustment Invoice by clicking Add an Adjustment Invoice.
Click Update Invoice Details.
Change the Bill To field to the financing company
This makes the whole adjustment invoice hidden from the original customer
Click Add a Task.
Task Name: “Financing Task” (You created this task in the setup section)
Unit Price: the amount that was financed (this needs to be the same amount you did in step 1)
The invoice can be exported before payment from the financing company is received
When payment is received from the financing company.
Go to the financing company customer page and click Collect/Apply Payment.
Amount: Amount received from the financing company (this will be less than the amount financed. $4,900 in the example shown in the image below)
Payment Type: However the finance company paid you
Apply to the appropriate invoice
Receive a second payment
If necessary, click Collect/Apply Payment again if you were taken back to the customer page
Payment Type: Financing Fee
Amount: Remaining amount ($588 in the below example).
When batching these transactions:
If you reconcile your Bank Statement by batch, the Financing Fee and GreenSky Financing payment types should NOT be batched and exported with other payments. They will make your batches not match your bank.
These payment types can be batched individually or with each other, but not other payment types.
Track the financing fee as a job cost
Go to Pricebook > Materials > + Add Material
Name: GreenSky Financing Fee (or Financing Fee, or the name of another financing company)
General Ledger Account: Financing Fee expense account created in step 2. For more information, see Set up a financing/buydown workflow.
This is a non-inventory, non-chargeable material
Create an additional adjustment invoice
Add a material:
GreenSky Financing Fee (created above)
Cost: Financing fee amount
This allows you to see the cost associated with the fee on your job costing report
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.