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<ManualTopic ID="/baanerp/tf/onlinemanual/000425" xml:lang="en">
   <Header>
      <Title>Factoring without recourse</Title>
      <Keyword type="header" order="d1e1670366">
         <Level1>Factoring</Level1>
         <Level2>financial postings - without recourse</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1670371">
         <Level1>Financial postings</Level1>
         <Level2>factoring without recourse</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <GeneralSection>
         <SectionTitle>Send invoices to factor</SectionTitle>
         <Paragraph>If invoices are factored without recourse, LN closes the
		  original invoices and creates a new open entry for the factor when you send the
		  invoices to the factor. The document type of the new open entry is <GUIRef href="" role="manual">Sales Invoice</GUIRef>, as the factoring transaction involves a sale of
		  receivables to the factor.</Paragraph>
         <Paragraph>The amount posted is the net amount receivable from the
		  factor, which is the invoice amount minus any deductions that apply to the
		  invoice-to business partner minus any existing credit notes for the invoice-to
		  business partner amount. For this entry, the factoring commission is not
		  treated as a deduction.</Paragraph>
         <List>
            <ListIntro>LN creates the following entries:</ListIntro>
            <ListItem>Debit: Factor Control Account</ListItem>
            <ListItem>Debit: Discount</ListItem>
            <ListItem>Debit: Late Payment Surcharges</ListItem>
            <ListItem>Credit: Customer Control Account</ListItem>
         </List>
         <Paragraph>If tax applies to the payments of the original invoice, then
		  the tax amounts are also posted when the original invoice is closed.</Paragraph>
         <List>
            <ListIntro>LN creates the following entries:</ListIntro>
            <ListItem>Debit: Interim Tax on Payments Account</ListItem>
            <ListItem>Credit: Sales Tax Account</ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Unfactor the invoice</SectionTitle>
         <Paragraph>If the customer fails to pay, or for other reasons, you can
		  decide to unfactor the invoice and to repay any received advances to the
		  factor.</Paragraph>
         <Paragraph>If the invoices were factored without recourse, the documents
		  can be unfactored if no amount was received from the factor for them. In this
		  case, the original invoices are reopened and the discounts and other deductions
		  that were posted at the time of sending are reversed. The invoice created for
		  the factor is closed.</Paragraph>
         <List>
            <ListIntro>The postings are:</ListIntro>
            <ListItem>Debit: Customer control account</ListItem>
            <ListItem>Credit: Factor control account</ListItem>
            <ListItem>Credit: Discount/ Late Payment Surcharges</ListItem>
         </List>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000420" role="manual">Reverse Charge Mechanism</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000424" role="manual">Factoring with recourse</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000426" role="manual">Factoring - receipts</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>