Discount/late payment surcharge

When no payment/receipt schedule is present for the invoice for which you are creating a payment, LN determines the default amount payable/receivable based on:

The payment/receipt document date.
The open invoice amount.
The discount dates recorded for the invoice.

The LPS/Discount for Partial Payments parameter in the CMG Parameters (tfcmg0100s000) session determines how discounts on partial payments are calculated. If this parameter is set to None, no default discount amounts are given.

If the LPS/Discount for Partial Payments parameter is set to Proportionally, the default discount amount is calculated as shown in the following example:

Example 1

The payable purchase invoice amount is USD 100. The allowed discount amount is USD 8.

The default amounts of the first payment will be: Amount paid = USD 92. The discount calculated = USD 8.

If the partial amount payable is USD 20, the default discount is USD 1.74 (20 * 100/92 * 8/100).

The default amount of the second payment will then be: Amount payable = USD 72.

Default discount: 72 * 100/92 * 8/100 = USD 6.26

If the LPS/Discount for Partial Payments parameter is set to Fully, the default discount amount is calculated as shown in the following example:

Example 2

The payable purchase invoice amount is USD 1,000. The following discount data exist for this invoice:

Discount amount 1:	20	Discount date:	2017-01-01
Discount amount 2:	15	Discount date:	2017-02-01
Discount amount 3:	5	Discount date:	2017-03-01

The paid amount entered for the first payment is USD 800, and the discount amount is USD 18.

The next partial payment of USD 200 is made on 2017-01-15. The default discount amount is zero. Based on the payment's document date, LN determines the discount allowed at that time: USD 15. If this amount is smaller than the discount that was already taken at the first payment (which was USD 18), the default value given is zero.

Note

The default amount payable is first calculated in the invoice currency. If the receipt/payment currency is not equal to the invoice currency, the amount is calculated in the invoice currency based on the currency exchange rates of both currencies. If the invoice currency has a fixed exchange rate, this rate is used.