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title: "Factoring - Configuration"
canonical: "https://wiki.soft1.eu/space/SS5EN/226230327/Factoring%20-%20Configuration"
format: markdown
---
SOFT1 ERP Configuration ① Contracts Create the invoices factoring  Contract  from Services Management → Contracts.  At contract  Type  → select  Factoring & Sales. The Contract should include the Trading Party (e.g. the Customer), for which the invoices will be assigned. ② Cash Accounts Create the  Cash Accounts  that will participate in the invoice factoring process from Financials→ Cash Account & Bank transactions → Banks & Cash Accounts. The  Account nature  field (Cash Accounts) should have the following: Current account (38.03 - account used for money deposit). Factoring account (30.90 - suspense account, used for invoice factoring). Medium-term loans account (52.90 - loan account, used receivables factoring). Moreover, select: the  Account Type  and the  Bank acct No. the  Bank  and the  Bank Branch  of the account. ③ Factoring / Forecast / Disbursement / Payment Documents For each of the below-described factoring processes, a respective document will be created in SOFT1 ERP. Assign Invoices to a Factor. Invoice discounting (forecast). Invoice discounting (disbursement). Assigned Invoices Payment. Balance Disbursement. Create the Document  Series  and  Types  from Parameters → Financials → Cash accounts & bank transactions → Reconciliations→  Open - Design Documents . The  Types  should: have the respective  Behavior:  Invoice factoring, Forecast, Disbursement, Invoice payment, refer to the proper  Entity , e.g. Cash accounts, Customers, etc. create the respective  Claims  and  Transactions , for example, at Invoices Factoring, the  Transaction  (Document Data area) should increase debit while the  Transaction  (Line data area) should increase credit. ④ Discount / Factoring Commission Documents Expenses invoices are a part of the factoring process and refer to the agreed commissions/fees between you and the factor, that is: the Discount commission / fees  and the Factoring commission / fees Create the  Series  and  Types  of the above-mentioned documents from Parameters → Financials → Other Transactions → Creditor Other transactions. Select Invoice (Documents Types,  Behavior  field). The Types should also create the respective Transactions and Claims.