| # Function: Factoring In this function, receivables are transferred from a customer to a factor company. LN supports both factoring with recourse and factoring without recourse. Process: Factor Documents (code: MAR04a) In this process, receivables are transferred to a factor company. The factor company handles the cash collection. The customer pays the invoice to the factor company and the factor company pays the company that issued the invoice. Operations included are: Assign a factor company to a sales invoice, if no fixed factor company is assigned to a customer. Transfer the receivables to the factor company. The sales invoice issuer will now have a receivable with the factor company. Because the factor handles the collection, and can bear the risk of non-payment, a commission will be charged, which reduces the receivable amount. Assumptions: No assumptions apply in this case. IT support: LN Financials, Accounts Receivable LN Financials, Cash Management LN Financials, General Ledger |