Factoring consists in transferring all or part of the customer accounts receivable or debts to a third party financial body: the factoring company, or the factor. The factoring company collects the accounts receivable that have been transferred to it and the related non-payment risk. In exchange, the factoring company settles the amount of the invoices, minus commissions and late charges.

It is important to note that saving commissions and late charges is not automated. When entering the payment of the factoring company, you need to create at least two lines: one line for the payment of the receipt as a whole, and another line for commissions and late charges (under an appropriate payment attribute, see Payment attributes).

The factoring function as it is managed in Sage X3 is sub-divided into several phases:

  • Identification of the factoring companies (see Factoring companies).
  • The assignment of a factor to the customer invoices to be processed (see Entry of factoring companies)
  • The creation of the receipts. It is used to create a list number for a set of invoices and credit memos transferred to a factoring company, and to print these lists of transferred invoices, accompanied with a transfer letter of accounts receivable. (see Receipt generation)
  • The posting of these receipts (current function)
  • Notification of the payment (see Payment notification)
  • You need to save a payment receipt in the same amount as on the factoring company's receipt. This phase follows the normal payment flow (see Payment entry).

The factoring company is not considered a BP. The payment must be entered on the account of the factoring company, without mentioning the BP.

Prerequisites

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Screen management

The Entry status for postings must be Final when the Generation type is Actual and when the company is:

  • either a French legislation company (the setup FRADGI/module TC/group CPT has "yes" for value and cannot be modified),
  • or a non-French company applying the French DGI no. 13L-1-06 compliance rules (the setup FRADGI/module TC/group CPT has "yes" for value and can be modified).

Entry screen

Receipts cannot be validated in bulk. You need to select each factoring company and receipt to be validated. When you click OK, the journal entry is created.

When you select a receipt, you have the following options:

Generation type

For Generation types, you can select: Actual, Active simulation, or Inactive simulation. The actual accounting document is a document that can always be viewed and printed (GL, Balance).

A simulation journal, once activated, is also integrated into the inquiry screens and print-outs. It can be converted into an actual journal or de-activated to become an inactive simulation. An inactive simulation is not visible in inquiries and reports such as physical stock count postings.

Entry status

The Entry status can be Temporary or Final. The status defines your ability to modify the journal. When final, you cannot modify the date, amounts, accounts, VAT code, and other accounting information. You can make modifications on a journal for information purposes only or for analytical postings.

Entry date

The Entry date determines the date the journal entry is generated.

Criteria

Factor (field BPRFCT)

Receipt posting
 
This procedure generates the accounting records for the receipt. An accounting document is managed by currency.

The posting line is the credit for the invoice and debit for the factor account.

If the Customer collective account of the factor is entered, the module uses this collective account plus the customer code (for the automatic document FCQ1) or the Dedicated customer account (auto document FCTQ2).

You can generate three types of receipts: Actual, Active simulation, or Inactive simulation. You can simulate a validation before posting to the journal. Simulated journal entries can be found in the REFSIM field with the following value: 'QT' + factor code + currency.
 
After Actual validation, the 'Receipt validated' flag (FCTVCRFLG field) displays for invoices related to the receipt.
 
For the electronic deposit to the factor, a file is generated in the BQE bank files directory.
 
Currency (field CUR)

The field displays the currency for the bank account indicated in the factor. If the Factoring type is Standard, this field remains blank.
Receipt no. (field FCTVCR)

Receipt posting
 
This procedure generates the accounting records for the receipt. An accounting document is managed by currency.

The posting line is the credit for the invoice and debit for the factor account.

If the Customer collective account of the factor is entered, the module uses this collective account plus the customer code (for the automatic document FCQ1) or the Dedicated customer account (auto document FCTQ2).

You can generate three types of receipts: Actual, Active simulation, or Inactive simulation. You can simulate a validation before posting to the journal. Simulated journal entries can be found in the REFSIM field with the following value: 'QT' + factor code + currency.
 
After Actual validation, the 'Receipt validated' flag (FCTVCRFLG field) displays for invoices related to the receipt.
 
For the electronic deposit to the factor, a file is generated in the BQE bank files directory.
 

Notification

Factoring type (field FCTTYP)

This field displays the factoring type for the selected factor and cannot be modified. 
Payment bank (field FCTBAN)

The selected payment bank populates this display-only field. This is the company/site for the factor. It must be compatible with the company/site for invoices being settled by the factor. You can only edit this field if the factoring type is not set to Standard.

Amount + tax (field AMT)

This field displays the total amount of the receipt in the currency of the factor. The change rate is calculated as a function of the entry date on the screen.

Reserve amount (field RESAMT)

This field displays the percentage of the invoice that the factor withholds to anticipate a possible nonpayment. You cannot edit this field if the factoring type is Recourse.

The actual percentage is based on your contract with the factor and cannot exceed the total invoice amount including tax. If the invoice is unpaid, the factor does not return the reserve percent.
Financial cost (field COMAMT)

You can edit this field if the account associated with the financial cost is subject to tax (see Accounting code). The default value is defined in the account. Enter the amount from the factor when the receipt is accepted. It must be entered in the bank currency.
Interest (field INTAMT)
Tax (field VAT)

This field displays the tax code that is valid for the company of the Bank account. The default tax code is defined in the general account “Financial cost of factoring operations” and this account is obtained from the accounting code associated with the factor.

Only tax codes valid for the company of the bank are allowed if you modify the default tax code. This account defaults from the Factor accounting code.
Tax amount (field AMTVAT)

This field shows the tax amount based on the tax set up.

Deductible tax amount (field DEDAMT)

This field displays the Deductible tax amount, which is calculated from the tax amount and the definition of the tax code.

If the financial cost field is empty, the tax and tax amount fields cannot be modified.

Generation

Generation type (field TYPGEN)

Receipt posting
 
This procedure generates the accounting records for the receipt. An accounting document is managed by currency.

The posting line is the credit for the invoice and debit for the factor account.

If the Customer collective account of the factor is entered, the module uses this collective account plus the customer code (for the automatic document FCQ1) or the Dedicated customer account (auto document FCTQ2).

You can generate three types of receipts: Actual, Active simulation, or Inactive simulation. You can simulate a validation before posting to the journal. Simulated journal entries can be found in the REFSIM field with the following value: 'QT' + factor code + currency.
 
After Actual validation, the 'Receipt validated' flag (FCTVCRFLG field) displays for invoices related to the receipt.
 
For the electronic deposit to the factor, a file is generated in the BQE bank files directory.
 
Entry status (field SIMSTA)

In the event of an actual generation, the status of the journal can be:

  • Temporary
  • Final

The entry status for entries must be Final when the requested generation type is Actual and the company meets one of the following criteria:

SEEINFO The status defines your ability to modify the document. Once final, the modifications of the journal are only for information purposes or concern the analytical postings. The date, amounts, accounts, VAT code and other purely accounting information can no longer be modified.

In temporary mode, most of the information displayed on the journal can be modified. The modification options can vary based on:

  • The nature and the origin of the accounting document:
    • Temporary payment document: bank line that cannot be deleted
    • Purchase invoice document: BP line that cannot be deleted, purchase account and VAT that cannot be modified
  • The management events that have an impact on the account document are:
    • Charge account with a declared VAT amount
    • Matched VAT account or not
Entry type (field TYPPCE)

Receipt posting
 
This procedure generates the accounting records for the receipt. An accounting document is managed by currency.

The posting line is the credit for the invoice and debit for the factor account.

If the Customer collective account of the factor is entered, the module uses this collective account plus the customer code (for the automatic document FCQ1) or the Dedicated customer account (auto document FCTQ2).

You can generate three types of receipts: Actual, Active simulation, or Inactive simulation. You can simulate a validation before posting to the journal. Simulated journal entries can be found in the REFSIM field with the following value: 'QT' + factor code + currency.
 
After Actual validation, the 'Receipt validated' flag (FCTVCRFLG field) displays for invoices related to the receipt.
 
For the electronic deposit to the factor, a file is generated in the BQE bank files directory.
 
Journal (field JOU)
Entry date (field ACCDAT)
Log file (field TRACE)

Batch task

This function can be run in batch mode, but no dedicated standard task is delivered to run it.

Error messages

In addition to the generic error messages, the following messages can appear during the entry :

The posted documents will have the 'Final' status for the company

If the processing is launched for a given company and this company has selected Conformity DGI no. 13L-1-06 (i.e. the value of setup FRADGI/chapter TC/group CPT is 'yes'), the documents generated by the processing will have the status 'Final'.

The posted documents will have the 'Final' status for one or more companies

The processing is launched for all companies or a group of companies, and if at least one of the companies chose Conformity DGI no. 13L-1-06 (i.e. the value of setup FRADGI/chapter TC/group CPT is 'yes'), the documents generated by the processing will have the status 'Final'.

Tables used

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