About partial customer payments
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Sometimes customers make a payment that is less than the amount of an invoice. You have multiple options for handling this situation. The options that are available to you depend on your configuration.
Discount amounts
You can offer customers a discount for paying an invoice before the due date.
For example, you offer a cash discount that specifies a 2% discount if the invoice is paid within 10 days of being issued. An invoice is posted for 100.00. If you receive a payment of 98.00 within 10 days, you would enter a credit of 98.00 in a payment journal. The credit amount is shown in the Amount to settle field and 2.00 is shown in the Cash discount amount field in the Settle open transactions form.
Partial payments with discounts
A customer might make a partial payment, with the intention of making an additional partial payment to fully settle the invoice.
For example, you offer a cash discount that specifies a 2% discount if the invoice is paid within 10 days of being issued. An invoice is posted for 100.00. If you receive a payment of 49.00 within 10 days, you would enter a credit of 49.00 in a payment journal. The credit amount is shown in the Amount to settle field in the Settle open transactions form. If the Calculate cash discounts for partial payments check box in the Accounts receivable parameters form is selected, the discount is automatically calculated. When you settle the partial payment in the Settle open transactions form, 1.00 is displayed in the Cash discount amount to take field. The discount amount is posted to a cash discount account.
Note
If you enter a partial payment and leave the full invoice amount in the Amount to settle field, the Cash discount amount to take field is automatically recalculated when you post the transactions.
Partial payments with multiple discount levels
A customer might make a partial payment, with the intention of taking the maximum discount that is available for the first partial payment, and a smaller discount for the subsequent partial payments.
For example, you offer a cash discount that specifies a 2% discount if the invoice is paid within 10 days of being issued. You also offer a 1% discount if the invoice is paid within 30 days. An invoice is posted for 100.00. If you receive a payment of 49.00 within 10 days, you would enter a credit of 49.00 in a payment journal. The credit amount is shown in the Amount to settle field in the Settle open transactions form. If the Calculate cash discounts for partial payments check box in the Accounts receivable parameters form is selected, the discount is automatically calculated. When you settle the partial payment in the Settle open transactions form, 1.00 is displayed in the Cash discount amount to take field. The discount amount is posted to a cash discount account.
If you receive a payment for the remaining amount after 10 days but before 30 days after the invoice is issued, the available discount would be 1%. The available discount amount would be 0.50, which is 1% of the remaining amount, 50.00. You would enter a credit for 49.50 in a payment journal.
Credit notes with discounts
A customer might return some of the items on an invoice and you issue a credit note. If a discount has previously been taken, you can subtract the value of the discount and refund the correct amount to the customer.
For example, you offer terms of payment that specify a 2% discount if the invoice is paid within 10 days of being issued. An invoice for 100.00 is posted. If the customer returns the goods and you issue a credit note, you can enter the credit note by entering a transaction for -100.00 in the Free text invoice form. If the Calculate cash discounts for credit notes check box in the Accounts receivable parameters form is selected, the discount is automatically calculated for the credit note. When you view the credit note in the Settle open transactions form, 98.00 is displayed in the Amount to settle field and -2.00 is displayed in the Cash discount amount field. The discount amount is posted to a cash discount account.
Overpayment/underpayment amounts
A customer might make a payment and the remaining amount to settle is very small.
For example, you invoice the customer for 1,000.00 and the customer pays 999.99. If the amount is less than the amount specified for overpayments or underpayments in the Accounts receivable parameters form, the difference is posted to an overpayment/underpayment account.
Full settlement
A customer might make a payment and there is a remaining amount to settle.
For example, an invoice is posted for 1,000.00. If you receive a payment of 990.00, you would enter a credit of 990.00 in a payment journal. You can select the Mark check box in the Settle open transactions form and the invoice is considered fully settled. The 10.00 difference is posted to a cash discount account, as an additional discount amount.
Note
(AUT, CHE, DEU) Full settlement functionality is available only if the Full settlement configuration key is selected, the primary address of the legal entity is in Austria, Germany, or Switzerland, and you open the form from a payment journal.
See also
Accounts receivable parameters (form)