Invoice discounting and factoring setup

In the “Invoice Discounting and Factoring Setup” page, you can set the main parameters for the APP to work.

The main fields to set are the following.

“Advance and Factoring No.": defines the serial number of the provisional list.

“Issued Advance and Factoring No.": defines the serial number of the issued list.

Factoring Section

“Factoring Payment Method Code”: set the payment method that will be used in the factoring type list, through which the accounts to be used, the origin code, the Bill code are retrieved.

In the “Settlement” box, there are the fields: “Def. Template Factoring Settlement”, “Def. Batch Factoring Settlement”, “Factoring Settlement Description” that allow you to define the journal and batch used by the system for the settlement entries and the description that will be proposed.

In the “Cash Receipts” box, there are the fields: “Def. Template Factoring Receipts”, “Def. Batch Factoring Receipts”, “Factoring Receipts Description” that allow you to define the journal and batch used by the system for the cash receipts entries and the description that will be proposed.

Advance Invoice Section

“Advance Invoice Source code”: allows you to set the source code used for recording the advance list.

In the “Closing Advance” box, there are the fields: “Def. Template Closing Advance”, “Def. Batch Closing Advance”, “Close Advance Invoice Description”. They allow you to define the journal and batch used for the closing advance entries as well as the proposed description.

Factoring general setup

For factoring (both pro soluto and pro solvendo), it is necessary to set up a specific payment method.

A bill code must be associated with the payment method.

The bill code must contain the “Final Bill No.” and the “Bill Source Code”

Factoring pro soluto setup - Bank account

For pro soluto factoring, in the bank account master data it is necessary to enable the bank via the Factor bank field.

On the «Bill posting group» page relating to the bank account, the «Factoring Acc. No.» will be set, which is the account to be moved when the list is registered.

Factoring pro solvendo setup - Bank account

In the case of pro solvendo factoring, in the bank account master data, it is necessary to enable the use of the bank through the «Factor Bank» field and set the «Factoring %» field, which defines the percentage that will be advanced by the bank.

On the «Bill posting group» page relating to the bank account, the «Factoring Acc. No.» and the «Factoring Trans Acc. No.» will be set. These accounts will be moved when the list is posted.

Factoring setup - Customer card

On the customer card, it is necessary to set the bank account relating to the Factor to which the customer’s credit will be transferred.

It is possible to select only bank accounts with the «Factor bank» flag active.

Invoice discounting setup

Similar to factoring, also for the advance invoice, it is necessary to enable the use of the bank account by setting the «Advance Bank» field.

In the «Advance Invoice» section of the Bank account tab, you can specify the following information:

  • «Advance type»: defines whether to use a G/L account or a bank account for accounting entries.
  • «Adv. Inv. G/L Account / Bank Account No.»: defines the G/L account number or the bank account to use in the entries.
  • «Advance %»: allows you to set the agreed advance percentage.
  • «Postpone Due Date»: allows you to recalculate the due date by adding a pre-established period.

Bill posting group

For the management of invoice advances, no specific bill posting group should be entered for the bank account used.


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