How to: Reconcile Payments With Discounts Manually

If you have agreed on a payment discount with your customer, then the payment amounts can be lower than the invoice amounts if payment occurs before the agreed discount date. For more information, see Discount %.

This topic explains four different procedures for posting discounted payments in the Payment Registration window.

• The payment amount is equal to the remaining discounted amount, and the payment date is before the discount date. You post the payment as is.

• The payment amount is equal to the remaining discounted amount, but the payment date is after the discount date. You post the payment as partial. The document remains open to collect/pay the remaining amount. Alternatively, you set the discount date later to allow the payment in full.

• The payment amount is lower than the remaining discounted amount. You post the payment as partial. The document remains open to collect/pay the remaining amount.

• The payment amount is more than the remaining discounted amount. You post the payments as is. Only the remaining amount is posted. The additional amount is credited to the customer.

To process a payment amount that is equal to the discounted amount and where the payment date is before the discount date

1. In the Search box, enter Payment Registration, and then choose the related link.

2. Enter the payment amount in the Amount Received field. The amount is equal to the amount in the Rem. Amt. after Discount field.

   The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.

3. In the Date Received field, enter the payment date. The date is before the date in the Pmt. Discount Date field.

4. Verify that the Remaining Amount field contains zero (0).

5. On the Home tab, in the Process group, choose Post Payments to post the full payment to general ledger, bank, and customer accounts.

   The related document is closed.

To process a payment amount that is equal to the discounted amount but where the payment date is after the discount date

1. In the Search box, enter Payment Registration, and then choose the related link.

2. Enter the payment amount in the Amount Received field. The amount is equal to the amount in the Rem. Amt. after Discount field.

   The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.

3. In the Date Received field, enter a payment date that is after the date in the Pmt. Discount Date field. Date fields change to red font, and an error message is shown at the bottom of the window.

   Tip

   If you want to make an exception and grant the discount even though the payment is late, then follow these steps:

   1. On the Navigate tab, in the Related Information group, choose Details.
      
      
   2. In the Payment Registration Details window, in the Pmt. Discount Date field on the Payment Discount FastTab, enter a date that is after the date in the Date Received field in the Payment Registration window.
      
      The error message and the red font disappear, and you can proceed to process the discounted payment.
      
      

4. Verify that the Remaining Amount field contains the amount that remains to pay the full invoice amount.

5. On the Home tab, in the Process group, choose Post Payments to post the partial payment to general ledger, bank, and customer accounts.

   The related document remains open.

To process a payment that is lower than the remaining discounted amount

1. In the Search box, enter Payment Registration, and then choose the related link.

2. Enter the payment amount in the Amount Received field. The amount is lower than the amount in the Rem. Amt. after Discount field.

   The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.

3. In the Date Received field, enter the payment date. The date is before the date in the Pmt. Discount Date field.

4. Verify that the Remaining Amount field contains the amount that remains to pay the discounted amount.

5. On the Home tab, in the Process group, choose Post Payments to post the partial payment to general ledger, bank, and customer accounts.

   The related document remains open.

To process a payment that is more than the remaining discounted amount

1. In the Search box, enter Payment Registration, and then choose the related link.

2. Enter the payment amount in the Amount Received field. The amount is more than the amount in the Rem. Amt. after Discount field.

   The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.

3. In the Date Received field, enter the payment date. The date is before the date in the Pmt. Discount Date field.

4. Verify that the Remaining Amount field contains zero (0).

5. On the Home tab, in the Process group, choose Post Payments to post the full payment to general ledger, bank, and customer accounts.

   The related document is closed, and the customer is credited the excess payment amount.

See Also

Tasks

How to: Reconcile Payments Manually
How to: Reconcile Payments With Discounts Manually
How to: Reconcile Overdue Payments Manually
How to: Find Unpaid Documents During Manual Payment Reconciliation

Concepts

Reconcile Bank Accounts

Other Resources

Payment Registration
Pmt. Discount Date