Factoring consists in transferring all or part of the customer accounts receivable or debts to a third party financial body: the factoring company. 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. (current function)
  • The posting of these receipts (see Receipt posting).
  • 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

SEEREFERTTO Refer to documentation Implementation

Screen management

Entry screen

The receipt generation function selects the invoices/credit memos that need to be placed on receipts.

The selection criteria are as follows:

  • Company: at least a company needs to be entered
  • Invoicing site
  • Invoicing currency
  • Factoring company: a receipt is generated by factoring company, but it is still possible to limit the creation of the receipts to a single factoring company, or to a group of selected factoring companies.
  • Invoice no. or credit memo no. ranges
  • Processing date range: only those invoices whose accounting date is higher than or equal to this date are processed.

Upon launching this process, the receipts are automatically created (the counter defined at factoring company level allows the assignment of a number to each one). Similarly, the printing of these receipts is automatically suggested.

Criteria

Company (field CPY)

The Receipts generation function assigns a receipt number to each invoice and credit memo based on the criteria you enter.

All invoices or credit memos that are not received or assigned to a factor receive the same receipt number. Receipts are numbered using a counter system where each subsequent number increases by one.

After a receipt is generated, you can print as follows:
 - Invoice details
- Credit memo details, if any
- A page that displays the receipt total
 
 Use  the Receipt cancellation function to cancel a receipt number.
 

 
All sites (field ALLFCY)
Site (field FCY)
Currency (field CUR)

Factors

From factor (field FCTDEB)

When you enter a factor as a range, the Company/Site of the factor must be compatible with the Company/Site for the company receipt being generated when the Factoring type is not Standard.

To factor (field FCTFIN)

Sales

From invoice (field NUMDEB)

The Receipts generation function assigns a receipt number to each invoice and credit memo based on the criteria you enter.

All invoices or credit memos that are not received or assigned to a factor receive the same receipt number. Receipts are numbered using a counter system where each subsequent number increases by one.

After a receipt is generated, you can print as follows:
 - Invoice details
- Credit memo details, if any
- A page that displays the receipt total
 
 Use  the Receipt cancellation function to cancel a receipt number.
 

 
To invoice (field NUMFIN)
From credit memo (field AVRDEB)
To credit memo (field AVRFIN)
End date (field DATFIN)
Log file (field TRACE)

The Receipts generation function assigns a receipt number to each invoice and credit memo based on the criteria you enter.

All invoices or credit memos that are not received or assigned to a factor receive the same receipt number. Receipts are numbered using a counter system where each subsequent number increases by one.

After a receipt is generated, you can print as follows:
 - Invoice details
- Credit memo details, if any
- A page that displays the receipt total
 
 Use  the Receipt cancellation function to cancel a receipt number.
 

 

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 :

"Enter the default site for company XXX"

This message appears when the receipt number counter is defined at company or site level and the company for which the generation of receipts is requested does not have a default site.

Tables used

SEEREFERTTO Refer to documentation Implementation