Cash discount is applied in the invoice [AX 2012]

Updated: December 6, 2010

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

If any cash discount is applied, a corresponding proportion of the posted sales tax is also refunded. If the sales tax option is enabled for the cash discount, the applicable sales tax amount will be stored with the entries.

If the cash discount is calculated on invoice amounts that include sales tax, the sales tax is refunded automatically when payment is made.

The invoice net amount is 100.00.

The sales tax is 25 percent, or 25.00.

The total invoice amount is 125.00.

A 10 percent cash discount is granted if payment is made within five days.

If the Cash discount is calculated on amount including sales tax check box is selected in the General ledger parameters form, the cash discount is calculated as 10 percent of 125.00, or 12.50.


If this check box is not selected, the cash discount is calculated on the invoice amounts before sales tax is calculated. Different rules apply in different countries/regions.

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