| Factoring - receipts |  |
| Receipts from the factor 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. You can select invoices for receipts in the following sessions: Select Invoices for Direct Debit (tfcmg4220m000). Direct Debit Batch - Advices (tfcmg4501m000). Electronic Bank Statements-Posting Data (tfcmg5106s000). Anticipated Receipts (Details) (tfcmg2117s000). Remittance Advice (tfcmg5501m000). Bank Transactions (tfcmg2100s000). Bank Transactions (tfcmg2500m000). 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. The default factoring commission depends on the values entered for the LPS/Discount for Partial Payments and Commission on Partial Payments in the CMG Parameters (tfcmg0100s000) session. The Factoring Commission account is specified in the CMG Parameters (tfcmg0100s000) session. Note When the receipt is posted, the factoring commission is treated as a deduction. If the receipt is treated as a normal receipt, the journal entries are:
Debit/Credit | Ledger Account
--- | ---
Debit | Bank Account
Debit | Factoring Commission Account
Debit | Discount/ Other Deductions
Credit | Customer Control Account
If the receipt is treated as an advance, the journal entries are as follows, when the advance is created:
Debit/Credit | Ledger Account
--- | ---
Debit | Bank Account
Credit | Advance Receipt Account
When the advance is assigned to the invoices:
Debit/Credit | Ledger Account
--- | ---
Debit | Advance Receipt
Debit | Factoring Commission Account
Debit | Discount/ Other Deductions
Credit | Customer Control Account
Repay unassigned advances 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. When the credit note is created, Infor ERP LN creates the following entries:
Debit/Credit | Ledger Account
--- | ---
Debit | Advance Receipt Account
Debit | Factoring Commission Account
Credit | Factor Control Account
To reverse the entry for the Invoices Factored account and the Contingent Liability account, you must un-factor or reopen the invoices that were related to the advance that you repaid. The factoring commission 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. 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 Actual Deductions account or the Interim Deductions 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. Posting the factoring commission is done in the following sessions: Post Electronic Bank Statements (tfcmg5222m000). Reconciliation of Anticipated Payments/Receipts (tfcmg2102s000). Match Electronic Bank Statements (tfcmg5212m000). Bank Transactions (tfcmg2100s000),for normal receipts/ remittance advice. Bank Transactions (tfcmg2500m000),for normal receipts/ remittance advice. Assign Unallocated/Advance Receipts to Invoices (tfcmg2105s000). Related topics Factoring Factoring with recourse Factoring without recourse |