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When you create a remittance batch, you specify whether the receipts should be factored. If you choose a Remittance Method of Factored, all receipts that have receipt classes with Remittance Method set to either 'Factoring' or 'Standard and Factoring' and that meet your selection criteria will be included in the remittance batch.

You create factored remittance batches the same way that you create a standard remittance batch. See: Creating Remittance Batches.

You can track your risk of customer default when you factor a receipt with your bank. In this case, Receivables creates a short term debt for the risk upon clearance of the receipt. Risk is displayed on your Bank Risk report and the different aging reports. Oracle Order Entry uses this value during credit checking. Run the Automatic Clearing program to eliminate your risk on or after the maturity date of your automatic receipts. See: Automatic Clearing for Receipts.

The following table shows the types of accounting entries that Receivables creates when you factor receipts whose receipt class requires confirmation, remittance, and clearance.

Action	Accounting Entries
Confirm Receipts	DR Confirmation CR Accounts Receivable
Factor Remittances	DR Factoring CR Confirmation
Clear Receipts	DR Cash DR Bank Charges CR Short Term Debt
Eliminate Risk	DR Short Term Debt CR Factoring
Table 1 - 27. (Table 1 of 1)

See Also

Creating Remittance Batches

Automatic Clearing for Receipts