Managing Factoring

This document outlines how you outsource collection of the company's customer payments to a factoring company.


Invoices are sold or pledged to a factoring company. Depending on the factoring agreement, invoices later reported as not paid are reopened and included in the company's debt management routine. For detailed information, see the subordinate process documents.

See Factoring.

Before you start

Follow These Steps

  1. Create Invoices with Payment Method for Factoring

    If you have connected your customers to a specific payment method for factoring, all invoices created for these customers receive this payment method. This is a prerequisite for including them in the factoring routine.

  2. Send Invoice to Payer for Information Purposes

    In addition to the invoice the factoring company sends, you can send a copy of the invoice and payment instructions to the payer. Whether or not you do this depends on your company's routines and your factoring agreement.

  3. Remit Invoices to Factoring Company

    Create a selection of invoices in 'Bank Remittance. Open' (ARS300), with the payment method as the main selection criterion, and remit the invoices to the factoring company.

    Currently, M3 does not support electronic remittance of invoices for factoring.

  4. Reconcile Payments

    When you receive the money from the factoring company, reconcile the payment against the remitted invoices in 'Bank Remittance. Reconcile Payment' (ARS350).

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