What is factoring in SAP FI-FIO-AR - Fiori UI for Accounts Receivable?

SAP Term: factoring

• Component: FI-FIO-AR

• Component Name: Fiori UI for Accounts Receivable

• Description: A company's ongoing sales to a third party of the accounts receivable claims generated by the company's purchasing of goods and services.

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• Key Concepts: 
  Factoring is a financial transaction in which a business sells its accounts receivable (invoices) to a third-party financial institution, called a factor. The factor pays the business the full value of the invoices, minus a fee, and then collects payment from the customers. This allows businesses to receive immediate cash flow without waiting for customers to pay their invoices. 
  
  How to use it: 
  The FI-FIO-AR Fiori UI for Accounts Receivable allows businesses to manage their accounts receivable and factoring transactions in one place. The UI provides an overview of all open and closed invoices, as well as the ability to create new invoices and manage existing ones. It also allows businesses to view their factoring transactions, including the fees charged by the factor and the status of payments from customers. 
  
  Tips & Tricks: 
  When using the FI-FIO-AR Fiori UI for Accounts Receivable, it is important to keep track of all open and closed invoices, as well as any factoring transactions. This will help ensure that businesses are able to receive payment for their invoices in a timely manner. Additionally, businesses should be aware of any fees charged by the factor when entering into a factoring agreement. 
  
  Related Information: 
  For more information on factoring and how it can benefit businesses, please visit the SAP website at https://www.sap.com/products/accounts-receivable/factoring.html. Additionally, businesses can contact their local SAP representative for more information on how to use the FI-FIO-AR Fiori UI for Accounts Receivable.