Scenario: Settle a partial vendor payment that has multiple discount periods
Important
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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 that has discounts on vendor credit notes
Scenario: Take a discount that is more than the calculated discount for a vendor payment