Factoring in Navision

Dear All, I’m wondering if in Navision is possible to manage factoring. The process consists in selling to a third company our rights on customer credits. We’d like to register some kind of special payment that closes the customer invoice but gives us the chance to see the due dates for the documents. Thank you for your attention. Regards. Guido.

Hi You can set up your factoring agent as a customer, then set the customer as the bill-to of the customers. All invoices are then pushed to the factoring company. Your only concern is if you then wish to see the transactions by sell-to customer [:D]

Hi Steven, thank you for your suggestion, but I think it’s not applicable to our case. I will try to explain it better on my bad english: the invoices must be issued to our customers, while we sell the credit to the factor. That means that the factor will pay before the invoice due date and the amount will be the invoice amount minus a commission percentage. If the final customer will pay the factor the process will end, otherwise we have to give back money to the factor. Actually we make a GL entry closing the customer and opening the factor but in this way we can’t see the customer’s invoices due dates (entries are closed!). Our finalcial director heard somewhere that Navision can manage this process with a specific procedure. I don’t think so but I’d like to be sure… Thank you again. Guido.

Hi Guido My suggestion still stands. You need to design the invoice to show the sell-to and bill-to addresses to enable you to send one to each, but the financial side of the transaction resides with teh factoring agent, and hence why they are the bill-to customer. When the cash comes in you process the cash receipt journal in, for the full payment, then add another line direct to the GL for sommission, balancing to the bank to get the bank correct. Or you can process through with payment tolerances, or even early settlement I beleive - although in these you need to consider the configuration of the posting groups to capture the commission. If you then have to pay the factoring agent back you would need to raise this as a manual transaction, the customer in this case is not affected as it is not a real credit. My suggestion just sends the financial transaction to the factoring agent, you can physically send the invoice in whatever format whereever, it just needs some process control and design. This may not meet your needs, but I know of a couple of companies using Navision in thus way, but perhaps it is not apt for your scenario.

Guido, I have done factoring in Navision before, and did it exactly as Steven suggests. Try his method out by example, and I think you will find that it works fine.