About partial vendor payments [AX 2012]

Updated: November 10, 2010

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

Sometimes you might make a payment to a vendor that is less than the amount of an invoice. You have multiple options for handling this situation. The options that are available to you depend on your configuration.

A vendor can offer you a discount for paying an invoice before the due date.

For example, you receive terms of payment that specify a 2% discount if the invoice is paid within 10 days of being issued. An invoice is posted for 100.00. If you make a payment of 98.00 within 10 days, you would enter a debit of 98.00 in a payment journal. The debit amount is shown in the Amount to settle field and 2.00 is shown in the Cash discount amount field in the Settle open transactions form.

You might make a partial payment, with the intention of making an additional partial payment to fully settle the invoice.

For example, you receive a cash discount that specifies a 2% discount if the invoice is paid within 10 days of being issued. An invoice is posted for 100.00. If you make a payment of 49.00 within 10 days, you would enter a debit of 49.00 in a payment journal. The debit amount is shown in the Amount to settle field in the Settle open transactions form. If the Calculate cash discounts for partial payments check box in the Accounts payable parameters form is selected, the discount is automatically calculated. When you settle the partial payment in the Settle open transactions form, 1.00 is displayed in the Cash discount amount to take field. The discount amount is posted to a cash discount account.

NoteNote

If you enter a partial payment and leave the full invoice amount in the Amount to settle field, the Cash discount amount to take field is automatically recalculated when you post the transactions.

You might make multiple partial payments, with the intention of taking the maximum discount that is available for the first partial payment, and a smaller discount for the subsequent partial payments.

For example, you receive a cash discount that specifies a 2% discount if the invoice is paid within 10 days of being issued. You also receive a 1% discount if the invoice is paid within 30 days. An invoice is posted for 100.00. If you make a payment of 49.00 within 10 days, you would enter a debit of 49.00 in a payment journal. The debit amount is shown in the Amount to settle field in the Settle open transactions form. If the Calculate cash discounts for partial payments check box in the Accounts payable parameters form is selected, the discount is automatically calculated. When you settle the partial payment in the Settle open transactions form, 1.00 is displayed in the Cash discount amount to take field. The discount amount is posted to a cash discount account.

If you make a payment for the remaining amount after 10 days but before 30 days after the invoice is issued, the available discount would be 1%. The available discount amount would be 0.50, which is 1% of the remaining amount, 50.00. You would enter a debit for 49.50 in a payment journal.

You might return some of the items on an invoice and you receive a credit note. If a discount has previously been taken, you can subtract the value of the discount and receive a refund for the correct amount.

For example, you receive a cash discount that specifies a 2% discount if the invoice is paid within 10 days of being issued. An invoice for 100.00 is posted. If you return the goods and you receive a credit note, you can enter the credit note by entering a negative transaction with a value in the Invoice field in the Journal voucher form for an invoice journal. If the Calculate cash discounts for credit notes check box in the Accounts payable parameters form is selected, the discount is automatically calculated for the credit note. When you view the credit note in the Settle open transactions form, 98.00 is displayed in the Amount to settle field and -2.00 is displayed in the Cash discount amount field. The discount amount is posted to a cash discount account.

You might make a payment and the remaining amount to settle is very small.

For example, you receive an invoice from a vendor for 1,000.00 and you pay 999.99. If the amount is less than the amount specified for overpayments or underpayments in the Accounts payable parameters form, the difference is posted to an overpayment/underpayment account.

You might make a payment and there is a remaining amount to settle.

For example, an invoice is posted for 1,000.00. If you make a payment of 990.00, you would enter a debit of 990.00 in a payment journal. You can select the Mark check box in the Settle open transactions form and the invoice is considered fully settled. The 10.00 difference is posted to a cash discount account, as an additional discount amount.

NoteNote

(AUT, CHE, DEU) Full settlement functionality is available only if the Full settlement configuration key is selected, the primary address of the legal entity is in Austria, Germany, or Switzerland, and you open the form from a payment journal.


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