Logic used to select invoices for payment

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

Criteria If yes
Does the discount date fall between the payment date and pay through date? The discount is taken, and the invoice is scheduled for payment regardless of the due date.
Does the due date fall 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.

It may help to picture this on a calendar. Mark your payment date and pay through date on the calendar, and shade in all the days between. The shaded area represents the window during which a discount date must fall to cause an invoice to be scheduled or discount to be taken. Invoices with due dates that fall in the shaded area, or earlier, will also be scheduled for payment.

Exceptions

There are exceptions to these selection criteria:

  • Invoices marked for immediate payment are scheduled for payment regardless of their due dates.

  • If you select the Take All Discounts option, the program takes the available discount on all invoices scheduled for payment regardless of their discount dates.

Examples

If you run a pay cycle with a payment date of November 5 and a pay through date of November 12, you would see this impact on these four 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
Illustration: Using the payment date and pay through date to schedule invoices and determine if discounts are taken

Making changes

If the Cash Requirements program does not select the invoices you want to pay, you have several options available to prevent invoices from being paid or to select additional invoices to be paid. Use one of these options:

  • Place selected invoices or vendors on hold on Hold Selection (AP40) or Mass Invoice Hold (AP141). Run Cash Requirements (AP150) again.

  • Assign a user-defined invoice group to those invoices you want scheduled for payment using Payment Schedule Adjustment (AP30.3). Run Cash Requirements (AP150) again for that invoice group only. The invoice group creates a separate check.

  • Assign a pay immediately indicator to those invoices you want scheduled for payment using either Payment Schedule Adjustment (AP30.3) or Invoice Hold Selection (AP40.1). Run Cash Requirements (AP150) with Yes in the Pay Immediately Only field.