Lendica is an optional module you activate.
Pay later for Bills Using Lendica
Setup
Create a liability GL account created with a subtype of Credit Card (Lendica Payable for example).
Create an expense GL account to record fees paid to Lendica for Pay Later or Fund Now. (Lendica Interest for example)
Steps
1 Select a bill to pay for with Pay Later by Lendica.
2 Record a payment in full to the bill and use a new liability account created with a subtype of Cash (Lendica Payable for example). For payment method, you can use EFT or Web Payment.
After payment is posted, the balance owing in the Lendica Payable would be the full amount of the bill and does not include any transaction fees due to Lendica.
3 To record the liability to Lendica, create a new bill to Lendica as a supplier, the first line of the bill would be to the GL account Lendica Payable for the full amount of the first bill that is paid via Lendica.
Create a second line and reference an expense GL account for the fees due to Lendica (Lendica Interest for example). The total will be the supplier's bill amount(paid via Pay Later) plus fees due to Lendica.
4 Lendica will withdraw payment from your bank account via ACH for each installment based on the payment schedule you selected. When you download the bank account transaction for each installment, choose payment to the Lendica bill (Created in step 3). After the last installment is withdrawn, the bill against Lendica will be paid in full.
Fund Now for Invoices by Lendica
Setup
Create a liability GL account created with subtype of Cash (Lendica Payable for example).
Create an expense GL account to record fees paid to Lendica for Pay Later or Fund Now. (Lendica Interest for example)
Steps
1 Select invoices to apply for Fund Now from Lendica. This can be done on the invoice listing page for any invoice with balances owing and in USD. Click on Fund Now button for the invoice.
2 To record the payment you receive from Lendica for this invoice, record a Misc Payment from the Invoices menu, Receive Misc Payment. Choose the bank account that received the Lendica payment. Create a new line item for the Misc payment, and choose the Lendica Payable GL account. Post the Misc Payment. After posting, your bank GL account is debited and the Lendica Payable account is credited. The balance owing in Lendica Payable is the full amount of the invoice and does not include fees due to Lendica. Once you receive the payment from Lendica and you make payment to this invoice, you can record a payment to this invoice using your bank GL account. Payment for this invoice is recorded the same way as other invoices.
3 Create a new bill to Lendica as a supplier, first line of the bill would be to the GL account Lendica Payable for the full amount of the fund now invoice. Create a second line and reference the expense GL account for the fees due to Lendica (Lendica Interests created in the setup step). The total will be the fund now invoice amount plus fees collected by Lendica.
4 Lendica will withdraw payment from your bank account via ACH for each installment. When you downloaded the bank account transaction for each installment, choose as payment to the Lendica bill (created in step 3). After the last installment is withdrawn, the bill will be paid in full and you have recorded all the entries.
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