Scenario: Settle a partial vendor payment and settle the final payment in full before 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 buys goods from vendor 3064. The vendor gives Fabrikam 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 payable and Accounts payable parameters (form).

On June 25, April enters an invoice for 1,000.00 for vendor 3064.

On June 25, April enters and posts an invoice for 1,000.00 for vendor 3064. April can view this transaction in the Vendor transactions form. (Click Accounts payable > Common > Vendors > All vendors. Select vendor 3064. On the Action Pane, click Transactions.)

Voucher

Date

Invoice

Amount in transaction currency debit

Amount in transaction currency credit

Balance

Currency

Inv-10010

6/25/2015

10010

1,000.00

-1,000.00

USD

In the Vendors form, on the Action Pane, April clicks the Invoice tab, and then clicks Settle open transactions. She 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

Inv-10010

3064

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

April 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

April can create a payment journal for this payment by opening the Accounts payable Payment journal form. She selects a journal name, creates a journal, and then clicks Lines to enter a payment. The payment journal is displayed, where April enters a line for vendor 3064. April clicks Functions > Settlement, so that she can mark payments for settlement. April marks the invoice and changes the value in the Amount to settle field to -500.00. She 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, April 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 April wanted to settle exactly half of the invoice, she would submit a payment of 495.00. To settle exactly 500.00, April 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

April closes the Settle open transactions form. A payment line for 495.00 is created in the journal, and April then posts the journal. April can review the vendor transactions in the Vendor transactions form. In this form, she sees that the invoice has a balance of -500.00. She 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

Inv-10010

Invoice

6/25/2015

10010

1,000.00

-500.00

USD

APP-10010

7/1/2015

495.00

0.00

USD

DISC-10010

7/1/2015

5.00

0.00

USD

April pays the rest of the invoice for vendor 3064 on July 8, which is in the cash discount period. April creates the payment journal on July 8 and marks the transaction for settlement. She 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

April posts this journal and reviews the vendor transactions in the Vendor transactions form. The balance for the invoice is now 0.00, and April 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

Inv-10010

Invoice

6/25/2015

10010

1,000.00

0.00

USD

APP-10010

7/1/2015

495.00

0.00

USD

DISC-10010

7/1/2015

5.00

0.00

USD

APP-10011

7/8/2015

495.00

0.00

USD

DISC-10011

7/8/2015

5.00

0.00

USD


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