Factoring

Factoring is the sale of a company's receivables to a third party. The third party becomes the recipient of the payments made against the receivables. For example, if your supplier sells receivables to a third party (the factor), you might make your payments to the factor instead of the supplier. To accomplish this in the JD Edwards EnterpriseOne system, you would set up the factor as an alternate payee. As with any alternate payee, you must set up address book records and bank account information for the payee and specify the alternate payee when you process payments.