Funds in factoring

Table of Contents

Setting up funds Assigning a fund to an agreement How funds flow to invoices Disbursement limits Payment journal Monitoring fund disbursements

The Funds feature lets you define multiple financing sources, each with its own bank account and disbursement limit. When a fund is assigned to a factoring agreement, the system caps how much can be paid out from that fund per invoice and automatically selects the correct bank account when generating payment journal lines.

A typical use case is a factoring company that draws advance payments from several external investors. Each investor is set up as a fund with its own bank account and a maximum disbursement percentage. The system tracks how much has already been paid out from each fund and prevents overpayment.

Setting up funds

Funds are configured once during initial setup and rarely need to change. Each fund corresponds to one financing source.

To open the Funds list
Choose the search icon, enter Funds, and then select the S4LF Fund List result.

To create a fund
On the Funds list page, choose New.
The Fund Card opens. Fill in the fields described below.
Choose Save & Close.

Fund Card fields

Field	Description
Code	Unique identifier for the fund. Required.
Description	Descriptive name shown in lookups and reports.
Bank Account No.	The bank account from which disbursements are made. Payment journal lines for invoices linked to this fund use this account automatically.
Max. Fund Disbursement %	Maximum percentage of the invoice or advance amount that can be paid out from this fund. Enter 0 to apply no limit.
Max. Fund Disbursement % Base	Determines how the maximum disbursement amount is calculated. Select Invoice Amount to base the limit on the invoice amount including VAT, or Advance Amount to base it on the advance amount. Required when Max. Fund Disbursement % is non-zero.

If Max. Fund Disbursement % is set to a non-zero value but Max. Fund Disbursement % Base is left blank, the system raises an error when it tries to calculate the limit. Always set both fields together.

Assigning a fund to an agreement

A fund is assigned at the agreement level. All invoices created under that agreement inherit the fund automatically.

To assign a fund
Open the Factoring Agreement Card for the agreement you want to configure.
On the General FastTab, locate the Fund Code field.
Select a fund from the lookup.
The Max. Fund Disbursement % field is filled in automatically from the fund record. You can adjust this value for the specific agreement without changing the fund's default.

Clearing the Fund Code field resets Max. Fund Disbursement % to zero.

How funds flow to invoices

When a factoring invoice is created under an agreement that has a fund assigned, the following fields are copied to the invoice automatically:

Invoice field	Copied from
Fund Code	Agreement Fund Code
Max. Fund Disbursement %	Agreement Max. Fund Disbursement %

These fields are visible on the Factoring Invoice Card and on the open and archived invoice list pages. They cannot be changed directly on the invoice — modify the agreement if a different fund or percentage is required for new invoices.

Disbursement limits

The system calculates three values for each invoice to enforce the fund limit:

Maximum disbursement amount — the upper limit for this fund on this invoice:

If Max. Fund Disbursement % Base = Invoice Amount: Invoice Amount (Incl. VAT) × Max. Fund Disbursement % / 100
If Max. Fund Disbursement % Base = Advance Amount: Advance Amount × Max. Fund Disbursement % / 100
If no fund is assigned or the percentage is zero: no limit applies.

Amount already disbursed from fund — the sum of all posted vendor ledger entries for this invoice that have Factoring Entry Type = Advance Payment or Reserve Release and match the invoice's Fund Code. Reversed entries are excluded.

Amount available for disbursement — the difference between the maximum and the already-disbursed amount. If the disbursed amount already exceeds the maximum, the available amount shows as zero.

Payment journal

When you run Suggest Factoring Payments in the Payment Journal and an invoice has a Fund Code, the system automatically sets the bank account on the suggested journal line to the bank account configured on the fund record.

The Factoring Fund Code column on the journal line shows which fund the payment will be drawn from. You can adjust this manually before posting if needed.

After the journal is posted, the resulting vendor ledger entry is stamped with the Factoring Fund Code. This is what the system reads when calculating the amount already disbursed from the fund on subsequent payment runs.

Monitoring fund disbursements

The Disbursed From Fund field on the open invoices list shows the total amount that has been paid out from the fund for each invoice. This field is calculated from posted vendor ledger entries and is updated when the factoring client statement report is run.

To see the individual entries that make up the disbursed amount, open the Factoring Entries page for the invoice and filter by Fund Code.