- Invoice factoring or discounting is a service that businesses can use to improve cash flow by selling some of their debts to an invoice factor/discounting company in exchange for immediate cash.
- The blog article discusses configuring Business Central to manage the scenario of using invoice factoring services.
- The first step is to configure relevant bank accounts in Business Central, including the main bank account and a bank account for the invoice factoring company.
- The scenario presented involves selling goods on credit terms, passing the sales invoice to the invoice factor company, and drawing down cash from the invoice factor to improve cash flow.
- Transactions such as bank transfers, cash receipts, and journal entries are used to manage the process of applying payments, fees, and reconciling accounts in Business Central.
- The example provided showcases a simple transaction in an invoice factoring scenario, illustrating the process of sending invoices to the factoring company, drawing down cash, and posting fees.
- The article emphasizes that there are multiple ways to configure Business Central when utilizing invoice factoring facilities and services to manage cash flow effectively.
- Overall, the blog article serves as a guide for businesses looking to leverage invoice factoring services within the Business Central platform for improved financial management.
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