Making Advance Payment

To disburse advance payment, navigate to the role center page, select Daily actions, and then choose Payment Journal (refer to Picture 16).

Select Prepare and Suggest Vendor Payments to prepare lines from previously accepted invoices.

In the Suggest Vendor Payments page, fill in Starting Document No. field, this will automatically assign Document No. values to all suggested payment lines. You can also select Posting Group Filter and choose Last Payment Date to find specific payments if necessary. After setting all options, click Ok to continue. Also, it‘s mandatory to fill out the Posting Date field. It specifies on which date the payment is made. In most scenarios, the current date must be populated.

The “Suggest Vendor Payments” functionality creates payment journal lines from information in the Accepted invoices. Advance payments are now ready to be posted. To do that, select Home and Post.

Verify Advance Payment Impact on Invoice

Navigate to Open Invoices in the role center page to check if it was posted correctly. Find the invoices by filtering Agreement No. field and check if the Advance Amount and Advance Paid sums are correct. Remember that depending on the factoring product setup, Upfront Commission could have paid part of the advance during invoice posting.

Ledger Entries Overview

After payments and invoices are posted, you can review ledger entries. To do so, navigate to the factoring agreement and find Open Invoices. Select one invoice and use Customer, Vendor, or General Ledger Entries actions to review what entries were created.

To verify that the correct Advance Amount from the factoring agreement for the invoice was posted, you can navigate to Vendor ledger entries. For instance, for invoice F06-01, the total amount was 900, of which 890 were posted from payment journals and 10 were posted upfront due to factoring product setup. Notice that the remaining amount is left from the Invoice Amount due to the Advance % field when factoring product setup. This amount matches the Reserve Total in the Open Invoices section.