Payment Tolerance and Payment Discount Tolerance
You can set up payment tolerance to close an invoice when the payment does not fully cover the amount on the invoice.
Payment Discount Tolerance
You can use payment discount tolerance to grant a payment discount after the payment discount date has passed.
If you accept a payment discount after the payment discount date, then it is always posted to either the payment discount account or a payment tolerance account.
You specify the method for posting payment discount tolerance in the G/L Setup window.
For more information, see How to: Set Up Tolerances.
Payment Tolerance
You can use payment tolerance so that every outstanding amount has a set maximum allowed payment tolerance. If the payment tolerance is met, then the payment amount is analyzed.
If the payment amount is an underpayment, then the outstanding amount is fully closed by the underpayment. A detailed ledger entry is posted to the payment entry so that no remaining amount is left on the applied invoice entry.
If the payment amount is an overpayment, then a new detailed ledger entry is posted to the payment entry so that no remaining amount is left on the payment entry.
Applying Payment Tolerance to Multiple Documents
A single document has the same payment tolerance whether it is applied on its own or with other documents. Acceptance of a late payment discount when you are applying payment tolerance to multiple documents automatically occurs for each document where the following rule is true:
payment discount date < payment date on the selected entry <= payment tolerance date
This rule also applies to determine whether to display warnings when you apply payment tolerance to multiple documents. The payment discount tolerance warning is displayed for each entry that meets the date criteria.
You can choose to display a warning that is based on different tolerance situations.
The first warning is for the payment discount tolerance. You are informed that you can accept a late payment discount. You can then choose whether to accept tolerance on the discount date.
The second warning is for the payment tolerance. You are informed that all entries can be closed because the difference is in the sum of the maximum payment tolerance for the applied entries. You can then choose whether to accept tolerance on the payment amount.
For more information, see How to: Enable or Disable Payment Tolerance Warnings.
See Also
Tasks
How to: Set Up Tolerances
How to: Block Payment Tolerances for a Customer or a Vendor
How to: Enable or Disable Payment Tolerance Warnings
Reference
Example - Tolerance Calculations for Single Document
Example - Tolerance Calculations for Multiple Document