Flexible Factoring for Supplier Invoices

Flexible Factoring for Supplier Invoices

(DA1174)

Further Information

Click below to view your selection of in-depth information for this project:

Benefits Statement ... 2

Legal, Fiscal and any Standards Considerations ... 2

Overview ... 2

Supplier Factor Conversion ... 2

Accounts Payable Changes ... 2

Suppliers ... 2

Invoices ... 3

Payments ... 3

Cash Entry ... 4

Journal Entry ... 4

Change Open Item Status ... 4

Accounts Payable Enquiries ... 4

Accounts Payable Reports ... 5

Year-End Supplier Cleardown ... 5

Purchase Order Processing Changes ... 5

Purchase Invoice Entry ... 5

Commercial Papers (Enhanced) Changes ... 5

AP Statements by Pay Type ... 5

AP Manual Letters ... 6

AP Combine Letters ... 6

Examples ... 6

Technical Data ... 7

Implementation - Existing Sites And/Or Existing Data ... 7

Licensing ... 7

System Keys ... 7

Data Dictionary Changes ... 7

Options ... 7

Forms Changes ... 7

Suspended Fields ... 7

Conversions ... 7

Implementation - New Line 500/Sage 1000 Installations With New Data ... 8

Licensing ... 8

System Keys ... 8

Options ... 8

Suspended Fields ... 8

Definition of Terms ... 8

Data Dictionary Changes ... 9

Accounts Payable ... 9

Purchase Order Processing ... 10

Forms Changes ... 10

Benefits Statement

This functionality adds flexibility to the supplier payment process. When a supplier requests payment to an agent or factor for a specific invoice, this can be recorded either as the invoice is entered or subsequently. The invoice can then follow the normal payment process, saving time and avoiding the errors inherent in manual management of these cases.

Legal, Fiscal and any Standards Considerations

Overview

This project allows you to automate payment for an invoice to a third party other than the original supplier or the single factor currently allowed. You can enter a factor (for example, a bank) as the invoice is entered and to make the payments accordingly. The Factor is recorded as a separate supplier in the standard supplier file. You can have one or many factors for each supplier/factor.

Changes have been made in the following areas of the system to accommodate this functionality:

Supplier Factor Conversion

A new option, Supplier/Factor Conversion has been added to the System Manager>Housekeeping>Application Conversion menu. This option must be run when the project DA1174 is first licensed if implemented on an existing site. It populates the Factor indicator field on the Factor Supplier extension and also on the Supplier/ Factor Cross-Reference file.

The payment reference field on each supplier record is accessed and the corresponding supplier record updated with a value of Y in the 'Factor' indicator field. A record is also written to the Supplier/Factor Cross-reference file for the supplier/factor combination.

Accounts Payable Changes

Suppliers

A supplier can now be categorised as a ‘factor’. A new field, 'Factor?' has been added on the first page of the Supplier maintenance option, to indicate whether the supplier is a ‘factor’ type supplier (if ticked) or is a normal supplier (unticked).

Both suppliers and factors can be associated with a number of other factors. A new function key, F12-Factors, has been added to allow you to add, amend or remove factors associated with the supplier. A new field, 'Factor', has also been added to allow you to define the default factor for the supplier. This is the existing Payment reference field.

Note Supplier Advances or the Remittance Advice option, which has been superseded by the payment list functionality, does not support Multiple factors. EDI P/L Invoice Generation will not support multiple factoring. Chaining of factors is not supported by this project. This means that as it is possible to set up factors for factors, there is no means of moving down a hierarchy of factors to locate the lowest level factor.

The factor must have the same currency as the supplier. When adding/amending a factor to a supplier record, you can also apply start and end dates if the factor has a limited period of activity. These dates are validated against the invoice date when entering a new invoice. You can also add any comments relating to the factor.

When a supplier is deleted, all supplier/factor cross-reference records are also deleted. A warning message is displayed, if the supplier/factor cross-reference still contains records for the factor. Any existing invoices using the deleted factor are not affected.

Invoices

A new field of 'Factor' has been added (as a suspended field) to the invoice header. If the supplier has a default factor, this default is displayed in the Factor field, but may be overwritten by another factor set up for the supplier. If the Factor field is left blank, the invoice payment will be made to the original supplier.

If the factor has activity dates, the program will check that the invoice date falls within those dates, and displays a warning message if it does not.

If a Factor is used, payment of the invoice will be made to the Factor supplier. This is similar to using the Payment Ref. field on a supplier record, i.e., the invoice is posted to the original supplier account and the payment is directed to the Factor.

When an invoice has a factor and the factor is removed, the factor will remain on the invoice. The invoice will not post and the system log will show that the factor is missing. The invoice must be corrected before you can post it.

Payments

Create Payment List

For an invoice that has a factor, the factor code and name is printed on the report produced from the payments list. When a factor has a different payment type from the supplier, the payment details are shown on the list corresponding to the factor’s payment type.

Where an invoice has a factor and the factor is removed, either from the supplier/factor cross reference file or the supplier file, before creating the payments list, the invoice is not selected and the system log shows that the factor code is missing. The invoice open items must be corrected before it can be selected for the payments list, i.e. a new factor selected or existing removed.

Modify Payments List

The fields 'Factor' and 'Factor name' have been added to the third detail screen, when F11-Toggle is selected. The fields may also be displayed on the first and second detail screens, if required. They cannot be amended.

Generate Payments from List

The payment reference factor is obtained from the new purchase ledger file extension, and a single payment is generated for each supplier/factor combination. The address details are obtained from the supplier file and printed on any cheques and other payment documents, such as remittances. The cash item is then posted to the original supplier account.

For electronic payments, either via BACS or International Electronic Payments, bank details are obtained from the factor on the payment item, instead of the supplier record.

Please note the following:

• If the factor on the purchase ledger extension does not exist on the supplier file, no payment will be created. The error is reported to the system log.

• The batch number will have a suffix, e.g. /1 for payments to the factor, if there are also payments to the supplier in the same batch.

If the factor has a different payment type to the supplier, the payment will be for the factor’s payment type, e.g. if the supplier’s payment type is C (cheque) and the factor’s payment type is B (BACS) the payment will be paid via BACS to the factor’s bank account.

If the factor has a different currency to the supplier (if project DA0813 – Multi-Currency Payments is licensed) and different alternate currency to the supplier (if project DA0659 – euro is licensed), the relevant currency conversions are performed.

Where an invoice has a factor and the factor is removed, either from the supplier/factor cross reference file or the supplier file, before generating the payments, the payment is not made and the system log shows that the factor code is missing. The invoice open items must be corrected before it can be re-selected for the payments list and the payment generated.

Cash Entry

The factor code has been added to the F6-Automatic allocation screen, (as a suspended field). You cannot select items for more than one factor. If more than one factor has been selected, you are requested to change the selection.

Journal Entry

The factor code has been added to the F6-Automatic allocation screen, (as a suspended field). You cannot select items for more than one factor. If more than one factor has been selected, you are requested to change the selection. This enables credit notes and invoices for the same factor to be linked.

Change Open Item Status

You can now change the factor on an open item invoice. A new field, Factor has been added to the main screen. You can also add (unsuspend) the Factor name field to this form. You can browse and select an alternative factor as required. Only factors that have been set up for the supplier are displayed. The purchase ledger extension file is then updated with the new factor.

Accounts Payable Enquiries

Transaction Enquiry

The third toggle detail screen now includes fields for Factor code and Factor name. These fields are also printed on the F10-Print of the enquiry.

Note If the system key PLADVANCE is set to YES, then allocations may be made. Any cash item may be allocated regardless of the invoice factor

Note If the factor is found to be missing after the open item was selected for allocation, the allocation is prevented. The factor must be removed or amended via the option Change Open Item Status. This also applies when allocating items within Journals.

Supplier Enquiry

A new function key (F12) has been added to display a list of factors for the selected supplier. Details included are the factor code, name, start/end dates and any comments.

Accounts Payable Reports

Accounts Payable Listing/Invoice Audit Trail

For invoices that have factors associated with them, the factor code and factor name is also printed against that detail line.

Supplier Listing

You can now choose to print factor records only, supplier records only or all records. The default is blank for all records. For factor type records, the factor code, name, start/end dates and comments are also printed. The word ‘Factor’ is also printed to indicate the factor records.

See Examples of the above reports.

Year-End Supplier Cleardown

Any supplier records that have the 'Factor?' indicator ticked will not be removed during this clear down process. For any suppliers that are removed, records in the Supplier/Factor Cross-reference file are also removed. The report produced of suppliers removed now also shows the factor details, i.e., factor code, name, start/end dates and comments.

Purchase Order Processing Changes

Purchase Invoice Entry

The 'Factor' entry field has been added to the invoice header details form (as a suspended field). The default factor is displayed for the supplier. You can add/amend the default factor as required. The factor must be one set up for the supplier.

If the factor entered has start/end dates set up for a period of activity, the invoice date must be within those dates. A warning message is displayed if the invoice date falls outside the factor’ period of activity.

As with A/P invoices, the invoice payment will be directed to the factor, instead of the actual supplier. The invoice item will post to the actual supplier account. If the Factor field is left blank, the invoice payment will be made to the original supplier.

Commercial Papers (Enhanced) Changes

AP Statements by Pay Type

Payments are now grouped by supplier/factor combination rather than by supplier. The payment reference ‘factor’ is now obtained from the purchase ledger extension file and address/bank details of the factor are obtained from the Supplier file for printing on the Letter of Credit, in a similar way as for cheques.

AP Manual Letters

You can now enter the Factor on the main screen of the manual letter. If no allocations are made, the factor address and bank details are printed on the letter of credit.

If allocations are made, the Factor code is displayed on the F6-Allocations screen. You can only select items for one factor. If more than one factor has been selected, a message is displayed, asking you to change the selection. Bank details default to those of the supplier/factor entered. If a factor has not been entered on the main screen, the bank details are prompted for after the allocations have been made.

AP Combine Letters

Only letters with the same supplier/factor combination can be combined. The factor is added to the letter and item browses for this option.

Examples

The following are samples of the amended Accounts Payable reports: Accounts Payable Listing

The selection criteria for the report will be shown on the report heading. Invoice Audit Trail

Technical Data

*You must read the Implementation section before attempting to install this project*

This section details important information relating to the installation of this project. If you require any further assistance please contact Customer Support.

Implementation - Existing Sites And/Or Existing Data

Licensing

• Project DA1174 (Flexible Factoring for Supplier Invoices) must be licensed for it to become available. • Project DA0417 (Enhanced Commercial Papers) must also be licensed, in order to use Accounts Payable

Manual Letters.

System Keys

Not applicable.

Data Dictionary Changes

The additional data required for this project is stored in new tables which are detailed in Data Dictionary Changes

The files can be created by running the Create New Project Files application and specifying a project code of DA1174.

Options

The following option has been added:

Forms Changes

The forms listed in the Forms Changes section have been added with unsuspended fields:

Suspended Fields

The fields listed in the Suspended Fields section need to be unsuspended:

Conversions

When first installing DA1174, you must run the new conversion program, Supplier Factor Conversion. This populates the factor field on the following files:

• Factor Supplier Extension file • Supplier Factor/Cross-reference file

Module Option Description Command

Implementation - New Line 500/Sage 1000 Installations With New Data

Licensing

• Project DA1174 (Flexible Factoring for Supplier Invoices) must be licensed for it to become available. • Project DA0417 (Enhanced Commercial Papers) must also be licensed, in order to use Accounts Payable

Manual Letters.

System Keys

Options

Suspended Fields

The fields listed in the Suspended Fields section need to be unsuspended:

Definition of Terms

Data Dictionary Changes

Accounts Payable

Supplier/Factor Cross-reference (purch_sup_fac_xref, plsupfctm)

Factor Supplier Extension (purch_supp_factor, plsuppfm) This is a new extension to the supplier file: plsuppm.

Purchase Item Extension (purch_item_factor, plitemfm) This is a new extension to the purchase item file: plitemm.

Factor Purchase Invoice Extension (purch_inv_factor, plinvfm) This is a new extension to the purchase invoice file: plinvm.

Column Type Array Key Values Notes supplier char(8) 1 supplier code factor char(8) 1 factor supplier code factor_supp char(16) 1

start_date date date end_date date date

commnt char(60) free text

Column Type Array Key Values Notes supplier char(8) 1 supplier code factor_ind char(1) 'Y' or 'N' factor indicator factor_ind2 char(1) 1 'Y' or 'N' factor indicator supplier2 char(8) supplier code

Column Type Array Key Values Notes supplier char(8) 1 supplier code item char(10) 1 item number factor char(8) factor supplier code

Column Type Array Key Values Notes batch char(6) 1 batch number supplier char(8) supplier code item char(10) item number page_no char(4) /001 to /999 page no.

Factor Purchase Cash Extension (purch_cash_factor, plcashfm) This is a new extension to the purchase cash file: plcashm.

Factor Purchase Journal Extension (purch_jrn_factor, pljrnfm) This is a new extension to the purchase journal file: pljrnm.

Purchase Order Processing

Factor Purchase Invoice Header Extension (pop_inv_head_fa, poinvhfm) This is a new extension to the purchase item file: poinvhfm.

Forms Changes

The following forms and sub-forms have been added: Column Type Array Key Values Notes batch char(6) 1 batch number supplier char(8) supplier code item char(10) item code page_no char(4) /001 to /999 page number factor char(8) factor supplier code

Column Type Array Key Values Notes batch char(6) 1 batch number supplier char(8) supplier code

item char(10) item number e.g. journal page_no char(4) /001 to /999 page number '/001 to /999 factor char(8) factor supplier code

Column Type Array Key Values Notes supplier char(8) 1 supplier code

invoice char(10) item number, e.g. invoice factor char(8) factor supplier code

Module Application Form Sub-Form

pl supplier_maintenance factor_details open_item_enquiry open_item_detail5 detail supplier_enquiry print_form2 factor_details supplier_listing print_form factor_details year_end_procedure print_form factor_details supp_factor_conv main

sys_form

The following fields have been added to existing forms and are NOT suspended:

Module Application Form Subform Field

pl supplier_maintenance page_1 details factor_ind_prompt factor_ind pay_ref_prompt comment payments_maint more_details_2 factor_code factor_name report header factor_header factor_name_header open_item_enquiry open_item_detail5 detail item_no

factor_code factor_name print_form detail_line1 factor_code

factor_name main_header factor_header

factor_name_header open_item_list print_form detail_line2 factor_code

factor_name main_heading factor_header

factor_name_header invoice_audit

print_form detail_line factor_name factor_code headline factor_header

factor_name_header print_form_new detail_line factor_code

factor_name headline factor_header

factor_name_header print_form2 headline_2 factor_header

factor_name_header

report_selection Add fields for the report selection as shown on the 'main' form

print_form_2_new headline_2 factor_header factor_name_header

pl invoice_audit print_hd_form headline All fields and text currently in subform 'report_selections' (print_form2_new)as part of the subform 'headline' (copied from print_form2_new)

factor_header factor_name_header

headline_2 All fields and text currently in subform 'report_selections' (print_form2_new)as part of the subform 'headline' (copied from print_form2_new)

factor_header factor_name_header

change_date main details factor_prompt

factor_code supplier_enquiry main details factor_ind_prompt

factor_ind pay_ref_prompt print_form subform factor

pay_ref_prompt supplier_listing print_form supplier_line factor

supp_factor_sel

cm cm_pl_letter_spool letter_form letter_form supplier_address (manually add 7th address line) spool_cp_int_stats print_sort1 line_header factor_header

spool_cp_int_status print_sort1 sort_file_line factor_code

Note Fields that are unsuspended in the Universal and GUI Clients may be suspended in the Character Client.

Suspended Fields

The following fields need to be unsuspended:

Module Application Form(s) Subform(s) Field(s) pl invoice_entry invoice_detail_1 header_detail factor_prompt

factor_code factor_name print_form detail_line_1 factor_name factor_code main_header_2 factor_header

factor_name_header print_form_fa detail_line_1 factor_code

factor_name main_header_2 factor_header

factor_name_header payments_maint details details factor_code

factor_name factor_header factor_name_header more_details more_details factor_code

factor_name factor_header factor_name_header remittance_advices print_form2 cheques address6

print_form3 cheques address6 cash_entry automatic_allocation detail factor_code

auto_allocation2 detail factor_code journal_entry automatic_allocation detail factor_code auto_allocation2 detail factor_code open_item_enquiry open_item_detail4 detail factor_code factor_name

change_date main details factor_name

supplier_enquiry print_form2 factor_details factor_name supplier_listing print_form factor_details factor_name year_end_procedure print_form factor_details factor_name

po po_invoice_entry header_details factor_prompt

factor_code factor_name print_form heading factor_code