Scenario: Settle a partial vendor payment that has multiple discount periods

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Vendor 3054 offers Fabrikam a cash discount of 2 percent if an invoice is paid in five days, and a cash discount of 1 percent if an invoice is paid in 14 days.

Invoice for 1,000.00 on June 28

On June 28, April creates an invoice for 1,000.00 for vendor 3054. April can view this transaction in the Vendor transactions form. (Click Accounts payable > Common > Vendors > All vendors. Select vendor 3054. On the Action Pane, click Transactions.)

Voucher

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

Inv-10060

6/28/2015

10060

1,000.00

-1,000.00

USD

The following cash discount dates and amounts are available for this invoice.

Cash discount date

Cash discount amount

Amount in transaction currency

7/3/2015

20.00

980.00

7/12/2015

10.00

990.00

7/25/2015

0.00

1,000.00

Payment for 294.00 on July 2

On July 2, April creates a payment of 300.00 for this invoice. Because this payment is made in the first discount period, a discount of 2 percent is taken. April can create a payment journal for this payment by opening the Accounts payable Payment journal form. She selects a journal name, creates a journal, and then clicks Lines to enter a payment. The payment journal is displayed, where April enters a line for vendor 3054. April then clicks Functions > Settlement, so that she can mark the invoice that will be settled. She updates the value in the Amount to settle field to 300.00, and she sees that the value in the Cash discount amount to take field is changed to 6.12.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Normal

Inv-10060

3054

6/28/2015

7/28/2015

10060

1,000.00

USD

300.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/02/2015

Cash discount amount

-20.00

Use cash discount

Normal

Cash discount taken

0.00

Cash discount amount to take

-6.12

April wants to settle a total of 300.00. She changes the value in the Amount to settle field to 294.00, and she sees that the value in the Cash discount amount to take field is changed to 6.00.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Normal

Inv-10060

3054

6/28/2015

7/28/2015

10060

1,000.00

USD

294.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/02/2015

Cash discount amount

-20.00

Use cash discount

Normal

Cash discount taken

0.00

Cash discount amount to take

-6.00

April posts the payment. In the Vendor transactions form, she can view the transactions. She sees that 300.00 has been applied to the invoice. This amount includes a discount of 6.00. Therefore, the remaining balance is 700.00.

Voucher

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

Inv-10060

6/28/2015

10060

1,000.00

-700.00

USD

APP-10060

7/2/2015

294.00

0.00

USD

DISC-10060

7/2/2015

6.00

0.00

USD

Payment for 495.00 on July 8

April applies 500.00 to the invoice for a payment that is made on July 8. In the Settle open transactions form, April clicks the Cash discount tab. She sees the dates and amounts for the two cash discounts that are available. Because this payment is made in the second discount period, a discount of 1 percent, or 5.00, is taken. This amount is calculated as half of the 1 percent discount on 1,000.00, or half of 10.00.

Cash discount date

Cash discount amount

Amount in transaction currency

7/3/2015

20.00

680.00

7/12/2015

10.00

690.00

7/25/2015

0.00

700.00

April settles the payment as follows.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Normal

Inv-10060

3054

6/28/2015

7/28/2015

10060

1,000.00

USD

495.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/12/2015

Cash discount amount

-10.00

Use cash discount

Normal

Cash discount taken

-6.00

Cash discount amount to take

-5.00

In the Vendor transactions form, April sees that the new balance is 200.00.

Voucher

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

Inv-10060

6/28/2015

10060

1,000.00

-200.00

USD

APP-10060

7/2/2015

294.00

0.00

USD

DISC-10060

7/2/2015

6.00

0.00

USD

APP-10061

7/12/2015

495.00

0.00

USD

DISC-10061

7/12/2015

5.00

0.00

USD

Payment for 200.00 on July 20

April creates a final payment on July 20. No discount is taken, because the payment is made after both discount periods. The balance for the invoice is 0.00.

Voucher

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

Inv-10060

6/28/2015

10060

1,000.00

-200.00

USD

APP-10060

7/2/2015

294.00

0.00

USD

DISC-10060

7/2/2015

6.00

0.00

USD

APP-10061

7/12/2015

495.00

0.00

USD

DISC-10061

7/12/2015

5.00

0.00

USD

APP-10062

7/20/2015

200.00

0.00

USD

See also

Scenario: Settle a vendor payment with an invoice

Scenario: Settle vendor payments by using payment proposals

Scenario: Settle a partial vendor payment and settle the final payment in full before the discount date

Scenario: Settle a partial vendor payment before the discount date with a final payment after the discount date

Scenario: Use the "Date to use to calculate discounts" field to control discount calculations for vendor payments

Scenario: Settle a partial vendor payment that has discounts on vendor credit notes

Scenario: Take a discount that is more than the calculated discount for a vendor payment