Factoring consists in transferring all or part of the customer accounts receivable or debts to a third party financial body: the factoring company or 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 in several phases:

  • The identification of the factoring companies. (see Factoring companies)
  • The assignement of the factoring companies to the customer invoices to be processed.  It is used to assign or to modify the assignment of a factoring company to the various invoices requiring factoring. This phase is optional if:
    • At the level of the Customer record, " Financial " tab, a factoring company has been specified. This customer is thus supposed to be regularly managed by this factoring company.
    • At the level of the sales invoice, "Invoice" tab, a factoring company has already been entered.
    • At the level of the customer invoice header, a factoring company has already been entered.
  • The creation of the receipts  to generate lists of transferred invoices accompanied with an account receivable transfer letter are proposed for printing. (see Receipt generation)
  • Posting of these receipts. This posting generates the creation of a magnetic file that can be transmitted to the factoring company. This magnetic file can be regenerated via a dedicated function. (see Receipt posting)
  • Payment notification. You need to save a payment receipt in the same amount as on the factoring company's receipt. The 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

Assigning a factoring company to invoices is carried out in a single screen where you enter the search criteria and a grid that displays the invoices that match your criteria. The invoices that have already been received or for which the amount is null are not displayed.

Header

You must enter the BP code of the Customer for which one or more invoices need to be processed.

You can narrow your search results with the following options:

  • Company issuing the invoice
  • Site issuing the invoice
  • Invoice number ranges

Grid

This grid displays all the invoices matching the selection criteria detailed in the header.

For each invoice listed, you can only edit the Factor column to assign the Factoring company to which the accounts receivable will be transferred. The Company/Site for the Factoring company must be compatible with the Company/Site for the invoice.

Click Save to apply any Factor assignments and then you can add them to a receipt.

Block number 1

BP (field BPR)

You must enter the BP code of the Customer for which one or more invoices need to be processed.

You can narrow your search results with the following options:

  • Company issuing the invoice
  • Site issuing the invoice
  • Invoice number ranges

The invoices that have already been received or for which the amount is null are not be displayed.
Company (field CPY)
Site (field FCY)
From invoice (field INVNUMDEB)
To invoice (field INVNUMFIN)

Grid Details

Category (field INVTYP)
Number (field NUM)
Date (field ACCDAT)
Pay-by (field BPRPAY)
Due date basis (field STRDUDDAT)
Amount + tax (field AMTATI)
Curr. (field CUR)
Factor (field BPRFCT)

Enter the Factoring company or Factor that will manage the accounts receivable for this invoice.

All other columns in the grid are display-only.

 
Paid (field MTTREG)
Status (field STA)
Invoice

Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation