What is factoring?

What is factoring?

Factoring is an agreement where an external partner takes over the follow-up and collection of invoices, often so that the business receives payment faster. In Telaris, invoices to be factored are collected in factoring batches and sent to the factoring partner – either as a file the partner reads in, or as an email with an attachment. This article gives an overview of the module.

TABLE OF CONTENTS

• Purpose
• What the module solves
• Functional overview
• Typical workflow
• Interaction with other modules
• Key concepts

Purpose

The goal of the factoring module is to collect invoices to be factored and send them to the partner in the correct format – together and traceably. The module covers setup of factoring partners, collecting invoices in batches, and the sending itself to the partner.

Factoring can also be selected as a payment method on an individual invoice. That is described in a separate article about invoices and payment. This article is about the batch and partner flow.

What the module solves

The module solves several practical challenges:

• Invoices to be factored must be sent to the partner in a format the partner accepts.
• Sending one invoice at a time is impractical – they should be collected and sent together.
• Different factoring partners require different file formats and delivery methods.
• It must be traceable which invoices have been sent to factoring, and when.

The module solves this by:

• Samle fakturaer automatisk i bunter per faktoringpartner
• Generating the correct file format for the selected partner, or sending by email
• Showing the batches with the number of invoices, amount and sent status
• Holde oversikt over hva som er sendt, og la en bunt nullstilles ved behov

Functional overview

Typical workflow

1. Set up the factoring partner (once).
2. Add invoices to factoring; they are collected automatically in a batch per partner.
3. Open the factoring batch and check the invoices it contains.
4. Generate and send the batch to the partner (file or email).
5. Keep an eye on the sent status; reset the batch if it needs to be sent again.

Interaction with other modules

• Invoice: factoring can also be selected as a payment method on an individual invoice.
• Invoice list: the invoices that are factored are found in the invoice list.
• Accounting export: factoring affects the posting, with a separate accounts receivable account per partner.
• Finance setup: factoring partners and default factoring are set up here.

Key concepts

Standard partnere

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