To set up factoring of accounts receivable

To set up factoring of your sales invoices, use this sequence of sessions:

1. Finance Company Parameters (tfgld0503m000)

   To factor the accounts receivables that are processed through the current financial company, select the Factor Invoices check box. In a multicompany structure, you must do this for every financial company in which you want to use factoring.

2. ACR Parameters (tfacr0500m000)

   Define the transaction types for factoring without recourse and for factoring with recourse. The transaction types must be of these categories:

   • For Send With Recourse, use Journal Vouchers.
   • For Send Without Recourse, use Sales Invoices.

3. Ledger Accounts by Business Partner Group (tfacr0111m000)

   Select a ledger account and dimensions for the Invoice Factored type of transaction.

4. CMG Parameters (tfcmg0100s000)

   On the Factoring tab, enter this data:

   • Commission

     Ledger Account.

   • Contingent Liability

     Ledger Account.

   • General

     Commission on Partial Payments

     Create debit notes while repaying

   • Transaction Types

     Re-open/Unfactor Invoices

     Settle/Unfactor Recourse Invoices

5. Business Partner (tccom4100s000)

   Define each factor as a business partner and select the Factor check box. You must define the invoice-to and pay-by roles for the business partner.

6. Pay-by Business Partners By Factor (tfacr0116m000)

   Assign pay-by business partners to a factor. You can assign a pay-by business partner to more than one factor, and you can indicate one of the factors as the default factor for the business partner.