Accounting Granularity controls the level at which SOFT4Factoring groups financial entries, tracks collection accrual dates, and resolves invoice status. The setting is configured per agreement and can be set at three levels: Invoice, Batch, or Agreement.
When granularity is set to Invoice, every factoring invoice is accounted independently. Reserve balances, accrual dates, and credit note entry filters all apply at invoice level. This is the default behaviour and matches the standard factoring workflow described elsewhere in this manual.
When granularity is set to Batch or Agreement, multiple invoices share a single accounting scope. The system groups factoring entries across all invoices in the batch or agreement when calculating payable balances, resolves invoice status without requiring individual reserve clearance, and tracks the collection accrual date at the batch or agreement level rather than per invoice.
Prerequisites
The Accounting Granularity field is only visible and available when all three of the following flags are enabled in Factoring Setup:
If any of these flags is disabled, the Accounting Granularity field is hidden on all pages and the system behaves as though Invoice granularity is in effect.
Configuring Accounting Granularity
Accounting Granularity is set on the Factoring Agreement Card and on the Factoring Product Card. The value on the Factoring Product serves as the default applied to new agreements created from that product.
You cannot change Accounting Granularity on an agreement after factoring entries have been posted against it. If you attempt to modify the field when entries exist, the system raises an error and reverts the change.
To set Accounting Granularity on a Factoring Product:
Open the Factoring Products list and select the relevant product.
On the Factoring Product Card, locate the Accounting Granularity field (General FastTab).
Select Invoice, Batch, or Agreement.
Close the card. New agreements created from this product will inherit the selected value.
To set Accounting Granularity on an individual agreement:
Open the Agreements list and select the agreement.
On the Factoring Agreement Card, locate the Accounting Granularity field.
Select the required value.
When the value is changed, the system automatically updates the Accounting Granularity on all existing Factoring Batches linked to that agreement and resets the default fee granularity on all agreement-level product fees.
Factoring Batches
When granularity is set to Batch, invoices must be assigned to a Factoring Batch before they can be processed. The Invoice Batches counter on the Agreement Card shows how many batches currently exist. Each batch has its own Accounting Granularity value, which the system keeps in sync with the parent agreement.
Open the Factoring Batch Card to view or manage a single batch. The Accounting Granularity field on the batch is read-only and reflects the agreement-level setting.
Behavioural differences by level
Invoice status
Overdue. At Invoice granularity, an invoice is only set to Overdue when Overdue Amount is non-zero and Advance Paid is non-zero. At Batch or Agreement granularity, the Advance Paid condition is not required — any invoice with a non-zero Overdue Amount is immediately set to Overdue.
Closed. At Invoice granularity, an invoice can only close when Reserve Outstanding = 0. At Batch or Agreement granularity, Reserve Outstanding is not checked; the invoice closes as soon as Debtor Outstanding = 0 and all charges are settled. This allows the reserve to be tracked and released at the shared (batch or agreement) level rather than per invoice.
Credit note posting
When a credit note is posted, the system reads the factoring entries that fall within the credit note's accounting scope to validate that the remaining payable and receivable amounts are sufficient. The scope is determined by the agreement's Accounting Granularity:
Invoice — only entries for the specific invoice.
Batch — all entries for the batch (Invoice Id filter is cleared).
Agreement — all entries for the agreement (both Invoice Id and Batch No. filters are cleared).
A wider scope means a larger pool of existing entries is available to absorb the credit amount, which is necessary when the economic liability is spread across multiple invoices.