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Scenario: Settle a partial customer payment and settle the final payment in full before the discount date [AX 2012]

Updated: October 12, 2011

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

Fabrikam sells goods to customer 4028. Fabrikam offers a cash discount of 1 percent if the invoice is paid in 14 days. Invoices must be paid in 30 days. Fabrikam also offers cash discounts on partial payments. For information about these setup parameters, see About parameters for settlements in Accounts receivable and Accounts receivable parameters (form).

On June 25, Arnie enters and posts an invoice for 1,000.00 for customer 4028. Arnie can view this transaction in the Customer transactions form. (Click Accounts receivable > Common > Customers > All customers. Select customer 4028. On the Action Pane, click Transactions.)

Voucher

Transaction type

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

FTI-10010

Invoice

6/25/2015

10010

1,000.00

1,000.00

USD

In the Customers form, on the Action Pane, Arnie clicks the Collect tab, and then clicks Settle open transactions. He can use the Settle open transactions form to view the dates and amounts of cash discounts. The due date is July 25, and a cash discount of 10.00 is available if the invoice is paid by July 9.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Normal

FTI-10010

4028

6/25/2015

7/25/2015

10010

1,000.00

USD

990.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/09/2015

Cash discount amount

10.00

Use cash discount

Normal

Cash discount taken

0.00

Cash discount amount to take

10.00

Arnie clicks the Cash discount tab to view the discount amount.

Cash discount date

Cash discount amount

Amount in transaction currency

7/9/2015

10.00

990.00

7/25/2015

0.00

1,000.00

Customer 4028 wants to settle half of this invoice, or 500.00, on July 1. Arnie can create a payment journal for this payment by opening the Accounts receivable Payment journal form. He selects a journal name, creates a journal, and then clicks Enter customer payments. He enters the payment information and marks the invoice that he entered. When Arnie enters 500.00 for the amount, he also enters 500.00 in the Amount to pay field in the grid. He sees that a discount of 5.05 can be taken. The calculation for this discount is 500.00 / 0.99 * 0.01 = 5.05.

500.00 is divided by 0.99, because there is a 1 percent discount, so that the customer is paying 99 percent of the invoice. The result is then multiplied by the discount percentage, which is 1 percent, or 0.01. If the customer took the full discount of 10.00, the amount to settle would be 990.00.

Amount

500.00

Settled

500.00

Remaining

0.00

Discount information is shown in the grid at the bottom of the Enter customer payments form.

Cash discount amount to take

Cash discount taken

Amount to pay

5.05

0.00

500.00

If the customer wants to settle 500.00, or the payment plus the discount, the customer would submit a payment of 495.00. A discount of 5.00 would be calculated for a total of 500.00. To settle exactly half of the invoice, or 500.00, Arnie would enter 495.00, or 500.00 minus the 5.00 discount.

Amount

495.00

Settled

495.00

Remaining

0.00

Discount information is shown in the grid at the bottom of the Enter customer payments form.

Cash discount amount to take

Cash discount taken

Amount to pay

5.00

0.00

495.00

Arnie clicks Save in journal. The transaction is saved in the payment journal.

Instead of clicking Enter customer payments in the payment journal, Arnie can click Lines to enter a payment. The payment journal is displayed, where Arnie can enter a line for customer 4028. Arnie clicks Functions > Settlement, so that he can mark payments for settlement. Arnie marks the invoice and changes the value in the Amount to settle field to 500.00. Again, he sees that the value in the Cash discount amount field is 10.00 for the full invoice, and the value in the Cash discount amount to take field is 5.05. Therefore, Arnie is settling 505.05 of this invoice.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Selected

Normal

FTI-10010

4028

6/25/2015

7/25/2015

10010

1,000.00

USD

500.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/09/2015

Cash discount amount

10.00

Use cash discount

Normal

Cash discount taken

0.00

Cash discount amount to take

5.05

If the customer wants to settle exactly half of the invoice, the customer would submit a payment of 495.00. To settle exactly 500.00, Arnie would enter 495.00 in the Amount to settle field. This amount would include a 5.00 discount.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Selected

Normal

FTI-10010

4028

6/25/2015

7/25/2015

10010

1,000.00

USD

495.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/09/2015

Cash discount amount

10.00

Use cash discount

Normal

Cash discount taken

0.00

Cash discount amount to take

5.00

Arnie closes the Settle open transactions form. A payment line for 495.00 is created in the journal, and Arnie then posts the journal. Arnie can review the customer transactions in the Customer transactions form. In this form, he sees that the invoice has a balance of 500.00. He also sees a payment of 495.00 and a discount of 5.00.

Voucher

Transaction type

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

FTI-10010

Invoice

6/25/2015

10010

1,000.00

500.00

USD

ARP-10010

7/1/2015

495.00

0.00

USD

DISC-10010

7/1/2015

5.00

0.00

USD

Customer 4028 pays the rest of this invoice on July 8, which is in the cash discount period. Arnie creates the payment journal on July 8 and marks the transaction for settlement. He sees that the amount to be settled is 495.00. The value in the Estimated cash discount field is 5.00, because the 5.00 discount was taken previously.

Marked total

495.00

Estimated cash discount

5.00

Information about the marked transaction is shown in the grid in the Settle open transactions form.

Mark

Use cash discount

Voucher

Account

Date

Due date

Invoice

Amount in transaction currency

Currency

Amount to settle

Selected

Normal

FTI-10010

4028

6/25/2015

7/25/2015

10010

1,000.00

USD

495.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date

7/09/2015

Cash discount amount

10.00

Use cash discount

Normal

Cash discount taken

5.00

Cash discount amount to take

5.00

Arnie posts this journal and reviews the customer transactions in the Customer transactions form. The balance for the invoice is now 0.00, and Arnie sees the two payments and the two cash discounts.

Voucher

Transaction type

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

FTI-10010

Invoice

6/25/2015

10010

1,000.00

0.00

USD

ARP-10010

7/1/2015

495.00

0.00

USD

DISC-10010

7/1/2015

5.00

0.00

USD

ARP-10011

7/8/2015

495.00

0.00

USD

DISC-10011

7/8/2015

5.00

0.00

USD


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