Discounted Payments

 
If the debit is closed before the due date, a discount can be applied on the payment amount. The Discount Rate to be applied to discounted payments is specified on the Payment Transactions window accessed through the invoice, or on the Discount field of the Payment Collection Plan line. The specified Discount Rate indicates the discount to be applied to the payment amount when the debit on the line is paid until the specified date. Prepayment Interest can not be recorded on the line where the Discount Rate is specified. Even if a prepayment interest already exists, this value is reset when the discount rate is entered. Discount Rates can not vary depending on conditions. For example, users can not enter 14% discount for the first 7 days. However, a Discount Rate can be applied for payments processed until the date entered on the Date field.
 
Prepayment Interest can not be recorded on the line where the Discount Rate is specified. Even if a prepayment interest already exists, this value is reset when the discount rate is entered.
Discount Rates can not vary depending on conditions. For example, users can not enter 14% discount for the first 7 days. However, a Discount Rate can be applied for payments processed until the date entered on the Date field.
Associating AR/AP and Bank Slips with Discounted Payment Transactions
The Cash Payment or Cash Collection AR/AP slips or the Bank Money Orders (received) or Bank Money Orders (issued) Slips are used to close invoices with Debt Tracking. The Cash Collection and Money Orders (received) Slips, and the Cash Payment and Money Orders (issued) Slips are used for Sales Invoices and Purchase Invoices respectively.
The AR/AP Code field of the AR/AP and Bank Money Order Slips is used to specify the AR/AP of the transaction. Then the Discounted Payment option located in the F9/right mouse button menu is selected. Payment transaction lines of the invoices that the slip can close are listed. The discounted payment transaction to be closed with the slip is selected. The Amount information of the selected slip is transferred into the Debit or Credit column of the AR/AP or bank slip. The amount to be paid resulting from the discount applied to the payment transaction is transferred into the Payment (Discounted) field.
The Debt Tracking window indicates that the payment of the invoice is closed by the slip for which the Discounted Payment is processed.
 
The discount is then posted to G/L and tracked under the Discounts on Payments account.
 
Associating AR/AP and Bank Slips with Discounted Payment Transactions
 
The Cash Payment or Cash Collection AR/AP slips or the Bank Money Orders (received) or Bank Money Orders (issued) Slips are used to close invoices with Debt Tracking. The Cash Collection and Money Orders (received) Slips, and the Cash Payment and Money Orders (issued) Slips are used for Sales Invoices and Purchase Invoices respectively.
The AR/AP Code field of the AR/AP and Bank Money Order Slips is used to specify the AR/AP of the transaction. Then the Discounted Payment option located in the right mouse button menu is selected. Payment transaction lines of the invoices that the slip can close are listed. The discounted payment transaction to be closed with the slip is selected. The Amount information of the selected slip is transferred into the Debit or Credit column of the AR/AP or bank slip. The amount to be paid resulting from the discount applied to the payment transaction is transferred into the Payment (Discounted) field.
 
The Debt Tracking window indicates that the payment of the invoice is closed by the slip for which the Discounted Payment is processed. The discount is then posted to G/L and tracked under the Discounts on Payments account.