Scenario: Settle a partial vendor payment before the discount date with a final payment after the discount date

Article
11/29/2021

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

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

Fabrikam purchases goods from vendor 3057. Fabrikam receives a cash discount of 1 percent if the invoice is paid in 14 days. Invoices must be paid in 30 days. The vendor also lets Fabrikam take cash discounts on partial payments. For information about these setup parameters, see About parameters for settlements in Accounts receivable and Accounts receivable parameters (form).

Invoice for 1,000.00 on June 25

On June 25, April enters and posts an invoice for 1,000.00 for vendor 3057. April can view this transaction in the Vendor transactions form. (Click Accounts payable > Common > Vendors > All vendors. Select vendor 3057. On the Action Pane, click Transactions.)

Voucher	Transaction type	Date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Balance	Currency
Inv-10020	Invoice	6/25/2015	10020		1,000.00	-1,000.00	USD

Partial payment for 297.00 with a discount on July 2

April wants to settle 300.00 of this invoice on July 2. The payment is eligible for a discount, because Fabrikam takes discounts on partial payments. Therefore, April pays 297.00 and takes a 3.00 discount. April can create a payment journal for this payment by opening the Accounts payable Payment journal form. She selects a journal name, clicks Lines, and then enters a line for vendor 3057. April then clicks Functions > Settlement, so that she can mark payments for settlement.

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency	Currency	Amount to settle
Selected	Normal	Inv-10020	3057	6/25/2015	7/25/2015	10020	-1,000.00	USD	-297.00

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	-3.00

April posts this payment. The invoice now has a balance of 700.00. April can view this transaction in the Vendor transactions form. (Click Accounts payable > Common > Vendors > All vendors. Select vendor 3057. On the Action Pane, click Transactions.)

Voucher	Transaction type	Date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Balance	Currency
Inv-10020	Invoice	6/25/2015	10020		1,000.00	-700.00	USD
APP-10020		7/1/2015		297.00		0.00	USD
DISC-10020		7/1/2015		3.00		0.00	USD

Remaining payment on July 15: 700.00 and Use cash discount = Normal

April pays the rest of this invoice on July 15, which is after the discount period. In the Settle open transactions form, no discount amount is displayed in the Estimated cash discount field, and the value in the Cash discount amount field is 0.00. When April pays the remaining 700.00, no additional discount will be taken.

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency	Currency	Amount to settle
Selected	Normal	Inv-10020	3057	6/25/2015	7/25/2015	10020	-700.00	USD	-700.00

Discount information is shown at the bottom of the Settle open transactions form. April can see that she has already taken a 3.00 discount.

Cash discount date	7/09/2015
Cash discount amount	0.00
Use cash discount	Normal
Cash discount taken	-3.00
Cash discount amount to take	0.00

April then posts the payment. When April opens the Vendor transactions form, she sees that the invoice has a balance of 0.00. She also sees that there are two payments. One payment is for 297.00 and has a 3.00 discount, and the other payment is for 700.00.

Voucher	Transaction type	Date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Currency
Inv-10020	Invoice	6/25/2015	10020		1,000.00	USD
APP-10020		7/1/2015		297.00		USD
DISC-10020		7/1/2015		3.00		USD
APP-10021		7/15/2015		700.00		USD

Remaining payment on July 15: 693.00 and Use cash discount = Always

If the vendor lets April take a discount, even though she is paying after the discount date, she can change the value in the Use cash discount field to Always. The Calculate cash discounts for partial payments setting is overridden, and the discount is taken. The payment amount is 693.00, and the discount is the remaining 7.00. For information about the Use cash discount field, see Settle open transactions - vendor (form).

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Currency	Amount to settle
Selected	Always	Inv-10020	3057	6/25/2015	7/25/2015	10020	700.00		USD	-693.00