Overview
There are three steps to accounting for the invoices you process through Resolve. The entries are similar to issuing an invoice and accepting multiple payments on it:

1. Create the invoice you are going to add to Resolve
2. Record the advance (if any) you take from Resolve
3. Record the payment (or non-payment) from your customer processed through Resolve

Along the way, you'll also record any fees charged by Resolve. Note that the ledger entries in this document are examples; additional entries will be required depending on your preferred basis of accounting.

Step 1: Create the invoice you are going to add to Resolve
Create an invoice in your accounting system, extending net terms to your customer and generating the following double-entry in your books:

Debit: Accounts Receivable
Credit: Revenue

Step 2: Record the advance (if any) you take from Resolve
Record your advance from Resolve as a payment on the invoice. Note that advances from Resolve are not loans.

Debit: Cash
Credit: Accounts Receivable

Note that Resolve also withholds a merchant discount rate from the advance. To account for this, you'll need an expense account called "financing expense" or similar.

Debit: Advance fee
Credit: Cash

Step 3: Record the payment (or non-payment) from your customer processed through Resolve
If your customer pays, Resolve will pass through the balance owed to you. Record this as another payment on your invoice.

Debit: Cash
Credit: Accounts Receivable

Resolve charges payment processing fees, so you'll also need an account for that if you don't have one already.

Debit: Payment processing fees
Credit: Cash

If your customer doesn't pay, you'll need to record a bad debt expense.

Debit: Bad debt expense
Credit: Accounts Receivable

Let's work through an example!
Let's say you issue a $100 invoice to your customer on Net 30 terms.

Step 1: Create the invoice you are going to add to Resolve
Debit: Accounts Receivable for $100
Credit: Revenue for $100

Let's assume your customer is approved for a 25% advance rate from Resolve, and your MDR for Net 30 is 2.75%.

Step 2: Record the advance (if any) you take from Resolve
Debit: Cash for $25
Credit: Accounts Receivable for $25

And for the fee of 2.75% on $25...
Debit: Advance fee for 69 cents
Credit: Cash for 69 cents

Finally, your customer pays and Resolve passes through what you are owed.

Step 3: Record the payment (or non-payment) from your customer processed through Resolve
Debit: Cash for $75
Credit: Accounts Receivable for $100

And for the fee, assuming Resolve charged you $1 for an ACH...
Debit: Payment processing fees for $1
Credit: Cash for $1

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