Remitting Customer Invoices for Direct Debiting or Factoring

This document explains how you remit recorded customer invoices either to a bank for direct debiting or to a factoring company.

Outcome

Customer invoices are remitted to the bank or to a factoring company. Direct debit invoices can also have been sent as an electronic file.

The following lists are printed:

The invoices are closed. (The only exception is for electronic direct debiting remittances, where the invoices are still open but are assigned status 15.) Invoices sent for factoring are assigned status 20=Remitted.

How you update accounts receivable depends on whether the remitting and the payment reporting from the bank/factoring company is done electronically or manually based on printed documents. Refer to Reconciling Customer Payments through Direct Debiting and Factoring.

The remittance files (FARREM), (FARRED) and (FARREX) are updated. Invoices are blocked from being included in another remittance.

The selection of invoices is saved with information category no. 210 (Remittance no.). Invoices remitted for direct debiting are also saved with information category no. 223 (Agreement no.) and invoices sent for factoring with no. 230 (Factoring). They can be reviewed in 'Accounts Receivable. Display Additional Information' (ARS250).

Direct Debiting

For manual remittance, the following account entries are created if you left the 'Electronic confirmation' check box unselected when confirming the remittance in (ARS300/E):

Accounting Rules Account Debit Credit
* Customer   x
AR75 – 193 Direct debiting remitted x  
AR75 – 310 Cash discount x  

*Account entry based on the customer invoice.

For a detailed description of the results of selecting or not selecting the 'Electronic confirmation' check box, see Create Payment Type.

Factoring

The following basic account entries are created:

Accounting Rules Account Debit Credit
* Customer   x
AR75 – 194 Factoring remitted x  
AR75 – 192 Factoring charge (per invoice) x  

*Account entry based on the customer invoice.

Before you start

Follow These Steps

  1. Create Bank Remittance Proposal

    Select the invoices to remit in 'Bank Remittance. Open' (ARS300) and verify that the proposal created is correct.

  2. Adjust and Confirm Proposal

    You can change the proposal in several ways: Remove invoices from being remitted; define partial payments of invoice amounts; add or adjust any cash discount. If you need to change any other invoice values in 'Accounts Receivable. Display' (ARS200), you must delete the proposal and then create a new one. When the proposal is correct, confirm it to create the final remittance.

  3. Send Remittance to Bank/Factoring Company

    Send the printed documents or the file to the bank or the factoring company, depending on the type of remittance.

    • For Manual remittance

      The invoices are closed. Invoices sent for factoring are assigned status 20=Remitted.

    • For Electronic Direct debiting Remittance

      The invoices are still open but are assigned status 15.

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