The Factoring tab is used to register advance payments from factoring companies or banks that are received for factored accounts receivable (sometimes also called "pledged receivables"). The remaining portion of the outstanding accounts receivable should be registered as usual using the payment method FA in the Register Incoming Payments or Incoming Payment List procedures.
In the Payment date field you enter the payment date for the payment you have received from the bank.
In the Paid amount field you enter the current amount.
In the Bank charge field you enter the bank charge, if any.
In the Payment method field you select payment method.
By using the Coding button, you can verify the coding and make any necessary changes.
Always Save between each registered incoming payment.
These incoming payments do not affect the accounts receivable ledger at all, they only create accounting records. The coding automatically uses the account for the bank, as well as the standard account Factoring as the offset account, instead of accounts receivable.
You may print factoring payments using the Print Incoming Payment Ledger / Accounting Orders procedure.