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Scenario: Cash discount handling for overpayments [AX 2012]

Updated: October 10, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Use the Cash discount administration and Maximum overpayment or underpayment fields in the Accounts receivable parameters form to specify how an obtainable cash discount difference is treated when an invoice is settled. An obtainable cash discount difference can be treated either as a cash discount difference or as a payment on an account. These settings are used when the settled payment amount, which includes the cash discount, does not equal the amount of the invoice that is being settled. Additionally, the overpayment amount must be between 0.00 and the amount that is specified in the Maximum overpayment or underpayment field.

Select Specific in the Cash discount administration field to specify an account in the Accounts for automatic transactions form. This account can be used to post the difference as a payment on the customer’s account. The payment can then be settled with another invoice. The difference is posted as a payment on the customer’s account only if the difference exceeds the amount that is entered in the Maximum overpayment or underpayment field.

Invoice total

Cash discount available

Amount to be paid, which includes the cash discount

Amount the customer actually pays

105.00

10.50

94.50

95.00

If you select Specific, the invoice will be settled. If the difference of 0.50 exceeds the amount that is entered in the Maximum overpayment or underpayment field, the difference will automatically be posted to the sales ledger account as a payment.

The following tables show the journal entries that are generated if the difference is between 0.00 and the amount that is entered in the Maximum overpayment or underpayment field.

Account

Debit amount

Credit amount

Cash

95.00

Accounts receivable

95.00

Account

Debit amount

Credit amount

Main account for customer discounts value that is specified in the Cash discounts form

10.50

Accounts receivable

10.50

Customer cash discount value that is specified in the Accounts for automatic transactions form

0.50

Accounts receivable

0.50, which can be settled with another invoice

The following tables show the journal entries that are generated if the difference exceeds the amount that is entered in the Maximum overpayment or underpayment field.

Account

Debit amount

Credit amount

Cash

95.00

Accounts receivable

95.00

Account

Debit amount

Credit amount

Main account for customer discounts value that is specified in the Cash discounts form

10.50

Accounts receivable

10.50

Select Unspecific in the Cash discount administration field to allow for the difference to be posted to varying accounts for cash discount differences, depending on the legal entity and whether the difference is an overpayment.

If you select Unspecific, the cash discount difference is handled as follows:

  • If the applicable cash discount is posted in the same legal entity as an overpayment, the cash discount amount is reduced by the amount of the overpayment.

  • If the applicable cash discount is posted in a different legal entity than an overpayment, the customer cash discount account that is specified in the Accounts for automatic transactions form is used. The cash discount amount is reduced by the amount of the overpayment.

Invoice total

Cash discount available

Amount to be paid, which includes the cash discount

Amount the customer actually pays

105.00

10.50

94.50

95.00

If you select Unspecific, the invoice will be settled, and the difference of 0.50 will automatically be posted to the ledger account that is specified for cash discount differences.

The following tables show the journal entries that are generated, regardless of the amount that is entered in the Maximum overpayment or underpayment field.

Account

Debit amount

Credit amount

Cash

95.00

Accounts receivable

95.00

Account

Debit amount

Credit amount

Main account for customer discounts value that is specified in the Cash discounts form

10.50

Accounts receivable

10.50

Customer cash discount value that is specified in the Accounts for automatic transactions form

0.50

Accounts receivable

0.50


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