Factoring in purchasing

[SusanneZ]

Hi, I have a question regarding factoring:

Company A purchases goods from a supplier. However, this supplier assigns its receivable to a factoring bank to which Company A makes the remittance (to the factoring bank). What would be the best way to represent the factoring process/workarounds?

Many thanks!

Best regards,

Susanne

[jose_alaman]

What you can do is assign a factoring accounting account to those operations and transfer balances between those suppliers.