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Hi,
we have a requirement from one of our clients for AR discounting. they are sending their AR to the bank for discounting, any thoughts on which best module, workaround or any 3rd party products suitable for this requirement. thank you in advance.
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Hi,
I needed a full blown factoring module that keeps track of my AR and my AP to the bank
I will put together my AR and assign this to the bank, lets call this my bill to the bank. the bank will pay me in advance 90% per bill. during collection from my customer I will remit back to the bank 90%.
the following period it will be the same process, at the end of say 4 months I will have 4 discounted bill to the bank with partial payments.
now I would to keep track of my
1. oustanding AP to the bank per discounted bill.
2. how much is my true AR net of bank discounts
3. which of my invoices where discounted by the bank and in which bill do they belong. [note that not all of my invoices were discounted]
I am guessing that you mean factoring, where an agency (like the bank) takes the receivables, pays a discounted rate to the client, and assumes responsibility for collection.
GP does this fine. Just enter a payment for the account, taking an allowance off the payment, and charging the allowance to a cost of collections GL account.
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