<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000426" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Factoring - receipts</Title>
		<Keyword><Level1>Factoring</Level1>
			<Level2>financial postings for receipts</Level2>
		</Keyword>
		<Keyword><Level1>Financial postings</Level1>
			<Level2>factoring, receipts</Level2>
		</Keyword>
		<Keyword><Level1>Financial postings</Level1>
			<Level2>factoring commission</Level2>
		</Keyword>
		<Keyword><Level1>Financial postings</Level1>
			<Level2>factoring, repay advances</Level2>
		</Keyword>
	</Header>
	<GeneralSection><GeneralSection><SectionTitle>Receipts from the factor</SectionTitle>
			<Paragraph>For factoring with recourse and without recourse, the factor is the default pay-by business partner for all receipt transactions concerning factored invoices. If a factored invoice is selected for receipts, the received amount is the invoice amount minus the factoring commission minus the deductions that apply to the invoice.</Paragraph>
			<List><ListIntro>You can select invoices for receipts in the following sessions:</ListIntro>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg4220m000" role="session">Select Invoices for Direct Debit (tfcmg4220m000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg4501m000" role="session">Direct Debit Batch - Advices (tfcmg4501m000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg5106s000" role="session">Electronic Bank Statements-Posting Data (tfcmg5106s000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2117s000" role="session">Anticipated Receipts (Details) (tfcmg2117s000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg5501m000" role="session">Remittance Advice (tfcmg5501m000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2100s000" role="session">Bank Transactions (tfcmg2100s000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2500m000" role="session">Bank Transactions (tfcmg2500m000)</GUIRef>.</ListItem>
			</List>
			<Paragraph>These sessions also display the factoring commission so that you can see how the net invoiced amount was calculated. You can change the amount, the factoring commission, and the pay-by business partner.</Paragraph>
			<Paragraph>The default factoring commission depends on the values entered for the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.disc" role="formfield">LPS/Discount for Partial Payments</GUIRef> and <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.fcpp" role="formfield">Commission on Partial Payments</GUIRef> in the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef> session. The <GUIRef href="" role="manual">Factoring Commission</GUIRef> account is specified in the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef> session.</Paragraph>
			<Paragraph>When the receipt is posted, the factoring commission is treated as a deduction.</Paragraph>
			<List><ListIntro>If the receipt is treated as a normal receipt, the journal entries are:</ListIntro>
				<ListItem>Debit Bank Account</ListItem>
				<ListItem>Debit Factoring Commission Account</ListItem>
				<ListItem>Debit Discount/ Other Deductions</ListItem>
				<ListItem>credit: Customer Control Account</ListItem>
			</List>
			<List><ListIntro>If the receipt is treated as an advance, the journal entries are:</ListIntro>
				<ListItem><List><ListIntro>When the advance is created:</ListIntro>
						<ListItem>Debit: Bank Account</ListItem>
						<ListItem>Credit: Advance Receipt Account</ListItem>
					</List>
				</ListItem>
				<ListItem><List><ListIntro>When the advance is assigned to the invoices:</ListIntro>
						<ListItem>Debit: Advance Receipt</ListItem>
						<ListItem>Debit: Factoring Commission Account</ListItem>
						<ListItem>Debit: Discount/ Other Deductions</ListItem>
						<ListItem>Credit: Customer Control Account</ListItem>
					</List>
				</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Repay unassigned advances</SectionTitle>
			<Paragraph>For factoring with recourse and without recourse, you can repay the unassigned amount of an advance payment by means of a credit: note for the factor.</Paragraph>
			<List><ListIntro>When the credit: note is created, SSA ERP creates the following entries:</ListIntro>
				<ListItem>Debit: Advance Receipt Account</ListItem>
				<ListItem>Debit: Factoring Commission Account</ListItem>
				<ListItem>Credit: Factor Control Account</ListItem>
			</List>
			<Paragraph>To reverse the entry for the <GUIRef href="" role="manual">Invoices Factored</GUIRef> account and the <GUIRef href="" role="manual">Contingent Liability</GUIRef> account, you must un-factor or reopen the invoices that were related to the advance that you repaid.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>The factoring commission</SectionTitle>
			<Paragraph>The factoring commission is posted to the appropriate accounts when the factor makes payments to your company. If the invoice is linked to a payment schedule, the factoring commission must be proportionally assigned to each installment.</Paragraph>
			<Paragraph>The net amount of the factoring commission is posted only once. The factoring commission is not posted per document. If an anticipated receipt is created for the payment document received from the factor, then the factoring commission is posted to the <GUIRef href="" role="manual">Actual Deductions</GUIRef> account or the <GUIRef href="" role="manual">Interim Deductions</GUIRef> account, as specified in the posting data. If the factoring commission is posted to the actual account on the anticipated receipt, it must not be posted again during reconciliation.</Paragraph>
			<List><ListIntro>Posting the factoring commission is done in the following sessions:</ListIntro>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg5222m000" role="session">Post Electronic Bank Statements (tfcmg5222m000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2102s000" role="session">Reconciliation of Anticipated Payments/Receipts (tfcmg2102s000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg5212m000" role="session">Match Electronic Bank Statements (tfcmg5212m000)</GUIRef>.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2100s000" role="session">Bank Transactions (tfcmg2100s000)</GUIRef>,for normal receipts/ remittance advice.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2500m000" role="session">Bank Transactions (tfcmg2500m000)</GUIRef>,for normal receipts/ remittance advice.</ListItem>
				<ListItem><GUIRef href="/baanerp/tf/cmg/tfcmg2105s000" role="session">Assign Unallocated/Advance Receipts to Invoices (tfcmg2105s000)</GUIRef>.</ListItem>
			</List>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000420" role="manual">Factoring</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000424" role="manual">Factoring with recourse</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000425" role="manual">Factoring without recourse</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
