Scenario: Settle a partial vendor payment before the discount date with a final payment after the discount date [AX 2012]

Updated: November 8, 2011

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).

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

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

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

Balance

Currency

Inv-10020

Invoice

6/25/2015

10020

1,000.00

0.00

USD

APP-10020

7/1/2015

297.00

0.00

USD

DISC-10020

7/1/2015

3.00

0.00

USD

APP-10021

7/15/2015

700.00

0.00

USD

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

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

Cash discount date

7/09/2015

Cash discount amount

7.00

Use cash discount

Always

Cash discount taken

-3.00

Cash discount amount to take

-7.00

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 693.00 and has a 7.00 discount.

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

0.00

USD

APP-10020

7/1/2015

297.00

0.00

USD

DISC-10020

7/1/2015

3.00

0.00

USD

APP-10021

7/15/2015

693.00

0.00

USD

DISC-10021

7/15/2015

7.00

0.00

USD


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