Pro solvendo factoring bill - Insert

When entering a factoring bill, the Bill Type must be set to «Factoring pro solvendo» and then the «Factoring Bank Account No.» must be filled in.

The «Payment Method Code» and the «Factoring %» will be automatically proposed.

Pro solvendo factoring bill - Documents selection

Using the «Select Invoices» or «Suggest Invoices» actions, you can select the invoices to be included in the bill.

Pro solvendo factoring bill - Posting

Upon posting, the bill is «issued» and archived in the archive «Issued Invoice Discounting and Factoring Bills».

Pro solvendo factoring bill - G/L entries

The posting of the pro solvendo factoring bill will make the following general ledger entries:

Factoring account no. (Factor Credits)   @   Customer transitional account

The customer ledger is not valued and the factored invoices, therefore, are not paid.

Pro solvendo factoring bill - Operational steps / procedures

The pro solvendo factoring management process is divided into the following phases:

The following procedures can be directly performed from the issued list:

  1. Advance payment settlement (action «Settlement»)
  2. Cash receipt (action «Cash Receipt Journals»)
  3. Residual payment settlement (performed from the same action «Settlement»)

Pro solvendo factoring bill - Advance settlement

The advance payment is settled by selecting the lines of the list to be settled and then using the «Calculate amount to be paid» action.

The system will fill in the «Factoring Amt. to Close (LCY)» field by applying the «Factoring %» present in the header of the list (Amount to close = Amount * Factoring %).

The posting lines will be proposed in the default batch that is accessed with the «General Journals» action.

The posting will be indicated by the «Closed Factoring Amount (LCY)» field present in the lines of the bill.

The settlement registration will make the following accounting entry:

Bank C\C (Factor)  @ Factoring account no. (Factor Credits)

Pro solvendo factoring bill - Posting cash receipt

The cash receipts are recorded by selecting the desired lines of the bill and then choosing the «Cash Receipt» action.

The cash receipts are always at nominal value.

The cash receipts will be proposed in the default batch accessed with the «Cash Receipt Journals» action.

The accounting will be indicated by the «Poster Receivables» flag present in the lines of the list.

Pro solvendo factoring bill - Remaining settlement

The settlement of the remaining amount is performed with the same methods as the advance settlement.

The lines of the bill to be settled will be selected and then the «Calculate amount to be paid» action will be chosen.

The system will fill in the «Factoring Amt. To Close (LCY)» field by calculating the residual amount still to be liquidated according to the following formula: Factoring Amt. To Close (LCY) = Amount (LCY) - Closed Factoring Amount (LCY).

Pro solvendo factoring - G/L entries summary

The accounting records, in the various phases of the procedure, are the following:


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