What this feature does:

This feature can be used two ways.
1) For billing corporate offices, from invoices originated at various branches.
2) For selling your A/R balances to a third-party A/R agency.

~Explanation~

As orders are invoiced in O/E, they are added to an 'Invoice Batch' in A/R. The A/R system will process "factored" customer invoices (that have a factored TERMS code) when the a/r invoice batch has posted.

Two batches will be created by this process: an invoice batch crediting the original customer and debiting the "factor customer", AND a cash receipt batch applying the credit memo against the invoice on the original customer's account.

Screen shot #1: Notice batch 19, the Auto-created batch, is "P" posted and the factoring batch, batch 20, is "U" unposted.

The factor batch will contain for each invoice that has "factored" TERMS codes:
    1. A credit to the CUSTOMER account
    2. A debit to the FACTOR CUSTOMER account

Screen shot #2: On the screen below, customer "1" is credited $87.25 and customer "482" is debited $87.25.

When the FACTOR batch is posted, and the CASH RECEIPT batch is posted, then the customer's account will be clear of this invoice.

Click HERE for instructions on the SETUP of Accounts Receivable Factoring.