1. Factoring Customer(s)
2. Factored TERMS
3. Factor setup

When adding a new customer (or changing an existing one), you can set the Default Payment Terms to reflect a factored customer.

Screen shot #1: Notice line 24 - "Default Payment Terms".

Factored TERMS Set Up

These terms are setup under A/R, System Management, Setup System, Support Files, Payment Terms Set Up.
The TERMS code must be added to the Factor Set Up in order to identify invoices to be sold to a factor.
During the invoice posting process, invoices defined with a factor set up will have a credit memo posted to the original customer and a debit memo posted to the "factored customer".

Screen shot #2: Terms Maintenance. Notice Terms "150" and "160".

Factor Set Up

Screen shot #3: From A/R main menu, System Management, Set Up System, Support Files, Factor Set Up

Multiple factor set ups can be created for the following reasons:

      1) Receivables are sold to more than one company.
2) More than one set of terms is factored (net 60, net 45) and for reporting purposes you want to track or age the "factored" invoice with the same terms.
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Fields

Number:
the factor number is assigned by the computer and is specific for each factored set up. A factor set up is assigned to EACH terms code that will be factored.

Description:
enter a description of the factor.

Customer:
enter the "factored customer's" account number that invoices will automatically be posted to when an invoice batch is posted.

Factor Customer APA Number:
enter the APA number that will be used when creating the invoice on the "factored customer's" account.

Original Customer APA Number:
enter the APA number that will be used when creating the credit memo on the original customer's account.

AR Group Number:
enter the group number that will be used when creating the invoice on the "factored customer's" account and when creating the credit memo on the original customer's account.

Category:
enter the category number that will be used when creating the invoice on the "factored customer's" account and when creating the credit memo on the original customer's account.

G/L account:
enter the general ledger account number that will be used when creating the invoice on the "factored customer's" account and when creating the credit memo on the original customer's account.

DR Document Type:
enter the debit document type that will be used when creating the invoice on the "factored customer" account.

CR Document Type:
enter the credit document type that will be used when creating the invoice on the "factored customer" account.

AR Terms:
enter the terms that will be used when creating the invoice on the "factored customer's" account and when creating the credit memo on the original customer's account.

Create One Factor Invoice Per Batch:
your response in this field determines if one invoice or multiple invoices will be created on the "factored customer's" account. A response of "Y" will create one invoice on the "factored customer's" account for ALL the factored invoices in the batch. A response of "N" will create one invoice on the "factored customer's" account for EACH invoice in the batch. (i.e. if there are 10 factored invoices in the batch, 10 invoices will be created).