Invoice payable to a Third Party - unknown party - reverse factoring

[svanteschubert]

Background

Invoice payable to a Third Party unknown at the time of invoicing (on-demand factoring, reverse factoring)

French Use Case n°10: Invoice payable to a third party unknown at time of invoicing (subrogation by a factor unknown at time of invoice creation)**

The invoice is to be paid to a third party, unknown to the PPF when the invoice is created (unknown factor). A contract must be drawn up between the supplier and the third party, before the latter can be declared to the buyer. The invoice is collected by the third party. The supplier is responsible for updating the collection status and transmitting the payment data to the PPF.

Figure 9: Invoice payable to a third party unknown at time of invoicing

The associated life cycle or process specifications are :

• Transmission of flow 1 by the supplier's platform (PPF in the example)
• For the transmission of the e-reporting payment data flow, 2 options are possible (depending on the commercial agreements between the supplier and the factor):
  • Option 1: The supplier transmits the e-reporting payment data stream (see 8-1).
  • Option 2: The third-party factor transmits the payment data e-reporting flow (see 8-2, PDP only).

The services offered by PPF are :

• If both the buyer and the third-party factor are connected to the PPF, the latter will be able to view/modify the invoice and its lifecycle;
• If both the supplier and the third party are connected to the PPF, the latter will have access to view/modify the invoice and its life cycle;
• Actors connected to the PPF will be notified (by e-mail) of any change in invoice status.

The steps in case 10 are :

Step	Stage name	Responsible player	Description
1	Invoice creation with factor	Supplier	The factor is unknown when the invoice is created. A flow 1 is sent by the supplier's platform (PPF in the example).
2	Receiving stream 1	PPF
3	Receipt of invoice	Buyer	The buyer's PDP 2 makes the invoice available to him. The buyer processes the invoice according to the life-cycle procedures before the optional "payment forwarded" status.
4	Invoice processing and status update before "Payment sent".
5	Subrogation	Supplier	The subrogation information will be transmitted to the recipient via a life cycle (flow 6). NB: The procedures for handling subrogation from the PPF are detailed in the "Subrogation" life cycle chapter of the Specifications File. external - General folder.
5b	Information on subrogation and correct invoice processing	Supplier
6	Receipt of subrogation	Buyer
7	Invoice payment to factor and status transmission	Buyer	Once the buyer has paid a third of the invoice, the latter collects the payment. This action is informed by the platforms' commercial offer.
8	Invoice collection	Third parties
8b	Information on correct invoice processing	Supplier	The third party updates the status of invoice receipt via its PDP 1.
9	Update "cashed" status	Supplier	The supplier updates the "cashed" status on behalf of the third-party factor via its platform (PPF in the example). The supplier's platform then sends the payment e-reporting flow for declaration to the authorities. The factor can update the "cashed" status if the supplier so wishes.
9b	Invoice collection information	Supplier
10	Receiving e-reporting feeds payment details	PPF
11	Receipt of "cashed" status	Buyer	Depending on the commercial offer of the PDP 2 platform, the customer may be informed of the "cashed" status.

NOTE: The text/pictures of this use case no. 10 were taken from the French government site! The text was extracted from V2.3 - deepl English DOCX and any pictures were taken from V2.2 - original English PDF)

[edmundgray]

BG-10 Payee refers to this Use Case i.e. Usage Note The role of Payee may be fulfilled by another party than the Seller, e.g. a factoring service.

See also section A.3.3 Factoring