Factoring Solution | User Manual
Factoring solution adds functionality that facilitates the submission of accounts receivables to a factor and funding payoff processing including the processing of funding payoffs, commissions and interests.
The following Estonian bank are supported Submission of accounts receivables
- Swedbank
- SEB
- Luminor
Funding payoff processing
- Swedbank
Main features:
- Highly configurable setup of factoring agreements.
- Generating a list of sales invoices according to each bank’s file format.
- Overview of transmitted/untransmitted receivables and payments’ status.
- Recourse and non-recourse factoring agreements.
- Assignment note on sales invoice in customers’ language.
- Factor XML-fail import and automated generation of journal lines according to contract type, incl.
- application of advance and payments under reserve.
- application of commission fees, VAT and interests.
- Customer or contract-based factoring limits.
Setup
To use the functionality, factoring agreement(s) must be created and editable fields be filled. Open Factoring Agreements and press button +New.
| Field | Description | Editable / Informative |
|---|---|---|
| No. ** | Amount of factoring agreements | Editable |
| Description | Description of the factoring agreement | Editable |
| Factoring Text on Invoice ** | Assignment note | Editable |
| Add Factoring Text on posting | Function, that enables to add assignment note after sale invoice rows | Editable |
| Limit: | Limit of the factoring agreement | Editable |
| No. of customers | Amount of customers linked with the factoring agreement | Informative |
| Customers Limits | Field displays total amount of the fields Factoring Limit from customer cards | Informative |
| No. of Untrasmitted Invoices | Total amount of posted sales invoiced not transmitted to factor | Informative |
| Untrasmitted Invoices Amount | Total amount of posted sales invoiced not transmitted to factor | Informative |
| No. of Open Entries | Total amouns of posted sales invoices associated with factoring agreement | Informative |
| Factoring Type | Factoring agreement type. Recourse and non-recourse contracts are supported | Editable |
| Factoring Vendor No. *** | Assistive vendor. Short-term liability through Vendor Ledger entry is posted after receiving factoring funding | Editable |
| Factoring Customer No. *** | Assistive customer. Transmitted to factor sales invoices are transferred to this customer | Editable |
| Commission G/L Account No. | Account from the chart of accounts commission fees and VAT are being posted to | Editable |
| Interest G/L Account No. | Account from the chart of accounts interests are posted to | Editable |
| Bank account | Bank account No associated with this factoring agreement | Editable |
| Transmissions Nos. | Code of a number series from number series list, that is used while creating transmission lines | Editable |
** Mandatory field
* Page **Standard text codes allows to manage assignment notes text according to customer’s Country/Region code. This allows to add text in different languages.
** Factoring Customer No. is compulsory in case of recourse factoring agreement and Factoring Vendor No. is compulsory in case of non-recourse factoring agreement. Both can be defined, but appropriate one will be used depending on factoring agreement type.
Factoring Agreements
Page contains two buttons Create Transmission and Transmissions in menu section and table fields
- Create Transmission - action button, that initiates transmission process. Process results in creating transmission rows, which can be further processed.
- Transmissions- opens Factoring Transmissions page.
| Field | Description |
|---|---|
| No. | Factoring agreement’s number |
| Description | Description of the factoring agreement |
| No. of Customers | Total amount of customers associated with this factoring agreement |
| No. of Untrasmitted Invoices | Total amount of posted invoices, that were not transmitted to factor |
| Untrasmitted invoices amount | Total amount of posted invoices that were not transmitted to the factor |
| No.of open entries | Amount of transferred and unpaid invoices |
| Limit | Displays the Limit fields value from factoring agreement card page |
Factoring Transmissions page
Page displays transmissions to factor, it contains two action buttons Transfer to Journal and Export to File and table fields.
- Transfer to Journal- a transmission row must be chosen before clicking Transfer to Journal. Journal and journal worksheet names are asked after pressing Transfer to Journal button. As a result of this action General Journal lines are created and ready for posting. After posting customer’s invoice is marked as paid and Factoring Customer ledger entry is created. Transferred receivable consists of copied information about the invoice number, amount, payments terms ets.
- Export to File - action generates file in Excel according to Swedbank AS format terms. Excel file must be submitted to factor manually in accordance with contracted conditions.
Factoring Transmissions page fields
| Field | Description |
|---|---|
| No. | Number of transmission from number series |
| Transmission Date | Data when transmission was created |
| No. of Invoice | Amount of transmitted invoices |
| Invoices Amount | Amount of transmitted invoices |
| No.of open entries | Amount of unpaid invoices |
| No.of factoring agreement | Factoring agreement number the invoices are associated with |
Usege
- Setup factoring agreement
To use the factoring functionality user must create new factoring agreement. Open Factoring Agreements and press button +New and fill all editable fields. -
Adding factoring agreement to a customer card
Connection between factoring agreement and a customer is generated by filling Factoring Agreement No. field on customers card. In the same place customer limit can be settled. Total amount of limits from all customer cards are displayed summarily at factoring agreement page.
NB! While creating sales invoice or sales order use can pick up any factoring agreement from the factoring agreements list. - Creating an export file to factor
This stage is described in Export to File section. -
Closing sales invoice and transferring accounts receivables to Factoring customer Action can be performed in case of recourse factoring agreement only and is described in Transfer to Journal section.
- Importing XML data file
XML is generated each time factor makes payment. This XML file can be downloaded and then imported to Business Central. To import file open Cash Receipt Journal and click Factoring Import under Process section. Factoring agreement number is requested firstly and the XML data file location. Journal lines are generated automatically in accordance with factoring agreement setup.
Here is an overview how cash receipt lines are created after XML file import.
Advanced payment receipt under non-recourse factoring agreement
| Journal line | Debit/Credit | Description |
|---|---|---|
| Factoring Customer | Credit | Factoring Customer No. field value from Factoring agreement page |
| Bank Account | Debit | Bank account from Factoring agreement page |
| Commission | Debit | Commission G/L account No. field value from Factoring agreement page |
| Commission VAT | Debit | Commission G/L account No. field value from Factoring agreement page |
Reserve payment receipt under non-recourse factoring agreement
| Journal line | Debit/Credit | Description |
|---|---|---|
| Factoring Customer | Credit | Factoring Customer No. field value from Factoring agreement page |
| Bank account | Debit | Bank account from Factoring agreement page |
| Interest | Debit | Interest G/L account no. field value from Factoring agreement page |
Advanced payment receipt under recourse factoring agreement
| Journal line | Debit/Credit | Description |
|---|---|---|
| Factoring Vendor Entry | Credit | Factoring Vendor from Factoring agreement page |
| Bank Account | Debit | Bank account from Factoring agreement page |
| Commission | Debit | Commission G/L Account No. field value from Factoring agreement page |
| Commission VAT | Debit | Commission G/L Account No. field value from Factoring agreement page |
Reserve payment receipt under recourse factoring agreement
| Journal line | Debit/Credit | Description |
|---|---|---|
| Factoring Vendor Entry | Debit | Factoring Vendor from Factoring agreement page |
| Bank Account | Debit | Bank account from Factoring agreement page |
| Interest | Debit | Interest G/L from Factoring agreement page |
| Transferred invoice | Credit | Total of transferred invoice under recourse contract* |
*NB! After reserve payment is received, Factoring Vendor Entries are applied to Transferred invoice, thus remaining amount of short-term liability and receivable equals to zero.
For more information, please contact:
https://www.itera.ee