If a supplier sells receivables to a factor, you can enter invoices for the supplier and make payments to the factor by creating a pay site defined for the factor. Factor is a person to whom a Buyer makes a payment instead of a Supplier. This is performed by creating a Factor Bank Account from the Banking Details tab on the Create Supplier window. As a result when an invoice is entered for the Supplier in the Remit to Bank Account the Account of the Factor is shown. When an invoice is entered for the supplier in the Remit to Bank Account, then the Account of the Factor defaults and at the time of payment the actual payment is remitted to the Factor Bank Account. On the first address line enter the name of the factor preceded by the word "and" or "or." On the remaining two address lines, enter the address of the factor. Payables then addresses the payment to the supplier and/or the factor, since Payables prints the supplier name and the three address lines on each payment.

Example 1:

Supplier ABC has sold their receivables to Factor B, and you want to send payments directly to Factor B. You want your payment document to be made out to "ABC Or Factor B." Define a pay site for supplier ABC called "Factor B." On the first address line enter "OR Factor B." On the remaining two address lines enter Factor B's address.

If you select the Factor B supplier site when you enter and pay an invoice for ABC, the first two lines of the payment will read "Payable to: ABC OR Factor B" and the factor can endorse and cash the payment.

Example 2:

Supplier ABC has sold their receivables to Factor B, and you want to send payments directly to Factor B. You want your payment document to be made out to "ABC AND Factor B." Define a pay site for supplier ABC called "Factor B." On the first address line enter "AND Factor B." On the remaining two address lines enter Factor B's address.

If you select the Factor B supplier site when you enter and pay an invoice for ABC, the first two lines of the payment will read "Payable to: ABC AND Factor B." Both the supplier and the factor will have to endorse the payment before it can be cashed by the factor.