Scenario: Use one customer payment to settle multiple invoices that span 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
Fabrikam sells goods to customer 4032. Fabrikam offers a cash discount of 1 percent if the invoice is paid in 14 days, and also offers cash discounts on partial payments. For information about these setup parameters, see About parameters for settlements in Accounts receivable and Accounts receivable parameters (form).
Three invoices that have a total balance of 3,000.00
Customer 4032 has three invoices:
Invoice FTI10040, for 1,000.00, was entered on May 15. This invoice is eligible for a cash discount of 1 percent if it is paid in 14 days.
Invoice FTI10041, for 1,000.00, was entered on June 25. This invoice is eligible for a cash discount of 1 percent if it is paid in 14 days.
Invoice FTI10042, for 1,000.00, was entered on June 25. This invoice is eligible for a cash discount of 2 percent if it is paid in five days, and 1 percent if it is paid in 14 days.
Settle all invoices on June 29 with a total payment of 2,970.00
If Arnie creates a payment journal to fully settle these invoices on June 29, the payment would be 2,970.00. The total of all discount amounts would be 30.00.
Arnie opens the Accounts receivable Payment journal form. He creates a journal, and then clicks Lines. In the Account field, he selects customer 4032, and then clicks Functions > Settlement. In the Settle open transactions form, Arnie selects the Mark check box for all three invoice lines.
The payment for invoice FTI10040 would be 1,000.00, with no cash discount.
The payment for invoice FTI10041 would be 990.00, with a cash discount of 1 percent, or 10.00.
The payment for invoice FTI10042 would be 980.00, with a cash discount of 2 percent, or 20.00.
Mark 
Use cash discount 
Voucher 
Account 
Date 
Due date 
Invoice 
Amount in transaction currency debit 
Amount in transaction currency credit 
Currency 
Amount to settle 

Selected 
Normal 
FTI10040 
4032 
5/15/2015 
6/15/2015 
10040 
1,000.00 
USD 
1,000.00 

Selected 
Normal 
FTI10041 
4032 
6/25/2015 
7/25/2015 
10041 
1,000.00 
USD 
990.00 

Selected and highlighted 
Normal 
FTI10042 
4032 
6/25/2015 
7/25/2015 
10042 
1,000.00 
USD 
980.00 
Discount information for invoice FTI10042 is shown at the bottom of the Settle open transactions form.
Cash discount date 
7/4/2015 
Cash discount amount 
20.00 
Use cash discount 
Normal 
Cash discount taken 
0.00 
Cash discount amount to take 
20.00 
The customer balance is 0.00.
Settle all invoices on July 1 with a total payment of 2,980.00
If Arnie creates a payment journal to fully settle these invoices on July 1, the payment would be 2,980.00.
Arnie opens the Accounts receivable Payment journal form. He creates a journal, and then clicks Lines. In the Account field, he selects customer 4032, and then clicks Functions > Settlement. He selects the Mark check box for all three invoice lines.
The payment for invoice FTI10040 would be 1,000.00, with no cash discount.
The payment for invoice FTI10041 would be 990.00, with a cash discount of 1 percent, or 10.00.
The payment for invoice FTI10042 would be 990.00, with a cash discount of 1 percent, or 10.00. Although July 1 is after the period for the 2 percent discount, it is still in the period for the 1 percent discount.
Mark 
Use cash discount 
Voucher 
Account 
Date 
Due date 
Invoice 
Amount in transaction currency debit 
Amount in transaction currency credit 
Currency 
Amount to settle 

Selected 
Normal 
FTI10040 
4032 
5/15/2015 
6/15/2015 
10040 
1,000.00 
USD 
1,000.00 

Selected 
Normal 
FTI10041 
4032 
6/25/2015 
7/25/2015 
10041 
1,000.00 
USD 
990.00 

Selected and highlighted 
Normal 
FTI10042 
4032 
6/25/2015 
7/25/2015 
10042 
1,000.00 
USD 
990.00 
Discount information for invoice FTI10042 is shown at the bottom of the Settle open transactions form.
Cash discount date 
7/13/2015 
Cash discount amount 
10.00 
Use cash discount 
Normal 
Cash discount taken 
0.00 
Cash discount amount to take 
10.00 
Partial settlement on June 29 with a total payment of 1,485.00
Customer 4032 can pay a partial amount, such as half of each invoice.
Arnie opens the Accounts receivable Payment journal form. He creates a journal, and then clicks Lines. He enters the payment date, and then clicks Functions > Settlement, so that he can mark payments for settlement. On each line, he enters the amount to settle. When a line is selected, Arnie sees the discount amount for that line and the discount amount that is taken. Because the customer is paying half of the invoice, Arnie sees that the value in the Cash discount amount field for FTI10042 is 20.00, but the value in the Cash discount taken field is 10.00. The payment amount is 1,485.00.
Mark 
Use cash discount 
Voucher 
Account 
Date 
Due date 
Invoice 
Amount in transaction currency debit 
Amount in transaction currency credit 
Currency 
Amount to settle 

Selected 
Normal 
FTI10040 
4032 
5/15/2015 
6/15/2015 
10040 
1,000.00 
USD 
500.00 

Selected 
Normal 
FTI10041 
4032 
6/25/2015 
7/25/2015 
10041 
1,000.00 
USD 
495.00 

Selected and highlighted 
Normal 
FTI10042 
4032 
6/25/2015 
7/25/2015 
10042 
1,000.00 
USD 
490.00 
Discount information for invoice FTI10042 is shown at the bottom of the Settle open transactions form.
Cash discount date 
7/4/2015 
Cash discount amount 
20.00 
Use cash discount 
Normal 
Cash discount taken 
0.00 
Cash discount amount to take 
10.00 
If Arnie manually creates a payment journal for 1,485.00, clicks Functions > Settlement, and then marks all three transactions, and Arnie does not adjust the value in the Amount to settle field for each transaction when he closes the form, the following message will be displayed:
The total amount of marked transactions is different from the journal amount. Change journal amount?
If Arnie wants the payment amount to be only 1,485.00, he clicks No, and then posts the journal. The transactions are settled as follows:
Invoice FTI10040 is fully settled for 1,000.00, because it was entered on May 15, and it is the oldest invoice. No cash discount is taken. The remaining amount on the payment transaction is 485.00.
Invoice FTI10041 is not settled at all. Invoices FTI10041 and FTI10042 were entered on the same date. However, a 1 percent discount is available to invoice FTI10041, and a 2 percent discount is available to invoice FTI10042. Because a better discount is available to invoice FTI10042, the remaining 485.00 is settled with invoice FTI10042.
Invoice FTI10042 is settled with the remaining 485.00. Fabrikam offers partial discounts. Because the invoice had a 2 percent discount, the customer pays 98 percent of the invoice. The discount is 9.90 (485.00 / 0.98 * 0.02). The amount is divided by 0.98, because there is a 2 percent discount, so that the customer pays 98 percent of the invoice. The result is then multiplied by the discount percentage, or 2 percent. The payment of 485.00 plus the discount of 9.90 is 494.90. The amount of the original invoice was 1,000.00. Therefore the transaction has a balance of 505.10, which is 1,000.00 – 494.90.
Arnie views the information in the Customer transactions form.
Voucher 
Transaction type 
Date 
Invoice 
Amount in transaction currency debit 
Amount in transaction currency credit 
Balance 
Currency 

FTI10040 
Invoice 
5/15/2015 
10040 
1,000.00 
0.00 
USD 

FTI10041 
Invoice 
6/25/2015 
10041 
1,000.00 
1,000.00 
USD 

FTI10042 
Invoice 
6/25/2015 
10042 
1,000.00 
505.10 
USD 

ARP10040 
6/29/2015 
1,485.00 
0.00 
USD 

DISC10040 
6/29/2015 
9.90 
0.00 
USD 
See also
Accounts receivable parameters (form)
About parameters for settlements in Accounts receivable
Scenario: Settle a customer payment with an invoice
Scenario: Automatic settlement and prioritization
Scenario: Cash discount handling for overpayments
Scenario: Settle a partial customer payment that has multiple discount periods
Scenario: Settle a partial customer payment that has discounts on credit notes
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