Logic used to select invoices for payment

The pay through date and payment date are used by the Cash Requirements process to determine which invoices to schedule and which invoices to discount. An invoice is scheduled for payment if it meets one of these two criteria:

Criteria Description
The discount date falls between the payment date and pay through date The discount is taken and the invoice is scheduled for payment regardless of the due date.
The due date falls on or before the pay through date The invoice is scheduled for payment. The discount is taken only if the discount date falls between the payment date and pay through date.

There are exceptions to these selection criteria:

  • Invoices that are marked for immediate payment are scheduled for payment regardless of their due dates.
  • Select Yes in the Take All Discounts option. The available discount is taken on all invoices that are scheduled for payment regardless of their discount dates.

Example

If you run a pay cycle with a payment date of 11/5 and a pay through date of 11/12, you can see the effect on these sample invoices:

Invoice Discount Date Due Date Discount Pay
1 2nd 12th No Yes
2 5th 20th Yes Yes
3 2nd 24th No No
4 14th 28th No No

Making changes

If the invoices that you want to pay are not selected when you run Cash Requirements, there are several options. You can prevent invoices from being paid or select additional invoices to be paid:

  • Place selected invoices or vendors on hold on Invoices On Hold or Invoice Hold Mass Update. Run Cash Requirements again.
  • Assign a user-defined invoice group to invoices to schedule for payment. Run Cash Requirements again for only that invoice group. A separate check is created.
  • Assign a pay immediately indicator to invoices to schedule for payment. Use Invoice Hold Selection. Run Cash Requirements with Yes in the Pay Immediately Only field.