Remittance in R12

  1. symtom

    symtom Active Member

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    What is the difference between standard remittance and factoring remittance? Can any one give real time scenarios for the above?
     
  2. yingsras

    yingsras Forum Advisor

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  3. symtom

    symtom Active Member

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    Thanks yingsras,

    I did even refer to those links and R12 User Guide but was unable to get the difference in practical sense!!

    AR Gurus, anyone who can shed more light into this?
     
  4. niranjan141

    niranjan141 Active Member

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    Hi,

    Standard Remittance : Money is transferred from customer bank account to your internal bank account on 'maturity date'

    Factor Remittance : Money is transferred from customer bank account to your internal bank account before 'maturity date', and system created a short term debt to bank. To handle if customer defaults the payment to bank.

    Hope this will help.

    Regards,
    Niranjan
     
  5. Rohit Bhagat

    Rohit Bhagat Newly Initiated

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    • Standard Remittances: For automatic receipts, you remit receipts to your bank so the bank can transfer funds from the customer's account to your account on the receipt maturity date. For manual receipts, the bank credits your account when the customer's check clears.
    • Factored Remittances: Remit receipts to your bank so the bank can lend you money against the receipts either before the maturity date (for automatic receipts) or before clearing (for manual receipts). After clearing factored receipts, Receivables creates a short term debt for the borrowed amount to track your liability in case of customer default.