Making Reserve Release Payment

The following criteria should be met to initiate reserve release. Go to Factoring Invoice and
verify:

1. That Interest Amount is equal to the Interest Amount Billed;
2. Term Charges Total are equal to Term Charged Billed;
3. Debtor Outstanding is 0;
4. Debtor Collections are equal to Invoice Amount (Incl. VAT);
5. Reserve Outstanding is not equal to 0;

To release Reserve Outstanding, navigate to the role center page and find Payment Journal in the Daily action group (refer back to Picture 16). Use the Suggest Vendor Payments functionality to generate a line for Reserve Release (the same as in the chapter Making Advance Payment).

Note that the payment amount suggested will be the exact amount from the open invoice in the agreement. The payment will have a Factoring Entry Type of Reserve Release and is now ready to be posted.

Verify Reserve Release Impact on Factoring Invoice

After posting the payment, navigate to the factoring agreement and note that the open invoice was moved to Archived Invoices after all charges have been billed. The invoice no longer has Reserve Outstanding; it will be transferred to the Reserve Released field. The status of the invoice will now be Closed. Archived invoices can be accessed easily from the role center page. This sums up the basic factoring scenario.