Introduction

Table of Contents

Getting Started Factoring Manager Role Center Daily Actions Monthly Actions Reports

Getting Started

Installation and user setup:

Role Center: Factoring Manager

Permissions: S4LF PERMISSIONS, S4LIB SUPER.

User Setup:

Factoring Admin - The user must flag this field to change the status of the Invoice or Agreement backward, turn on interest locking, remove the notification level, and so on. It isn’t recommended for all users.

Factoring User - The user must flag this field to obtain insert/modify permissions in SOFT4Factoring.

After you install the SOFT4Factoring solution, you will be directed to the standard Factoring Manager Role Center, which provides all necessary actions and pages in one place

Factoring Manager Role Center

At the top of the role center page (rectangle marked 1), there are several menu categories for quick access to the Chart of Accounts, General, Customer, and Vendor Ledger entries, and main Setup pages.

Further down (rectangle marked 2), you can see bookmarked links to Credit Limit Overview, Sales Invoices, Sales Credit Memos, Posted Sales Invoices, and Posted Credit Memos. Users can add their bookmarks by following this guide.

Some actions are grouped into Daily, Monthly, and Reports (rectangle marked 3)

The Daily actions include:

  • Cash Receipt Journal
  • Payment Journal
  • Update Factoring Amounts

In summary, the daily actions (Cash Receipt Journal, Payment Journal, Update Factoring Amounts) are essential for accurately recording transactions, updating balances, and maintaining the integrity of your factoring data daily.

The Monthly actions include Factoring Invoicing Run.

In addition to the Daily, Monthly, and Reports actions, a Factoring Activities category (rectangle marked 4) is divided into four groups: Factoring Invoices, Agreements, Others, and Credit Limit.

The Factoring Invoices group includes:

  • New Invoices
  • Open Invoices
  • Archived Invoices

The Agreements group includes:

  • Agreements
  • Closed Agreements
  • Master Agreements

The Others group includes:

  • Debtors
  • Vendors
  • Approval Requests

The Credit Limit group includes:

  • New
  • Review Date Soon
  • Review Date Overdue
  • Expires Soon

Daily Actions

Cash Receipt Journal

The Cash Receipt Journal records and processes incoming payments from debtors (customers). In the context of factoring, when a debtor makes a payment against an outstanding invoice, you need to register this payment in the system. The Cash Receipt Journal allows you to:

  • Enter payment details such as the debtor, payment amount, and applied invoice(s)
  • Update the debtor's outstanding balance
  • Reconcile the payment with the bank statement
  • Post the payment to the relevant G/L accounts

Timely and accurate registration of debtor payments is crucial for maintaining up-to-date records, monitoring debtor balances, and managing cash flow.

Payment Journal

The Payment Journal records and processes outgoing payments to vendors (clients). In factoring, when you disburse funds to your client (vendor) as an advance against their invoices, you use the Payment Journal to:

  • Enter payment details such as the vendor, payment amount, and applied invoice(s)
  • Update the vendor's outstanding balance
  • Generate payment files for bank transfers
  • Post the payment to the relevant G/L accounts

The Payment Journal streamlines the process of disbursing funds to your clients, and tracks advance payments made against factored invoices.

Update Factoring Amounts

The Update Factoring Amounts function is a daily routine that recalculates and updates various factoring balances and statuses. It performs tasks such as:

  • Updating invoice statuses based on due dates and payment statuses
  • Calculating and accruing interest on outstanding invoice amounts
  • Updating reserve balances and releasing reserves when conditions are met
  • Calculating commission and fee amounts

Running the Update Factoring Amounts function daily ensures that all factoring-related amounts and statuses are current. This is important for accurate reporting, monitoring portfolio performance, and making informed decisions.

Monthly Actions

The Monthly actions include:

  • Factoring Invoicing Run

The Factoring Invoicing Run is a monthly process that generates invoices for factoring charges, such as interest, commissions, and fees. This function:

  • Calculates the monthly interest, commission, and fee amounts based on the agreed up rates and terms
  • Creates sales invoices for these charges and posts them to the relevant G/L accounts
  • Updates the client's (vendor's) balance with the invoiced amounts.

Performing the Factoring Invoicing run monthly ensures that your clients are regularly billed for the factoring services provided and that your company's revenue is recognized promptly.

The Factoring Invoicing Run automates these invoicing tasks, saves time, reduces errors, and provides a systematic approach to billing clients for factoring charges.

Reports

The Reports category includes:

  • Amounts by Agreement
  • Amounts by Vendor & Product
  • Client Statement - Vendor
  • Debtor Statement
  • Activities Log

You can also a) filter any information in the system and create your personal views; 2) export information from the system and build your own Excel reports using Pivot tables; 3) use the Power BI tool to build visual reports.