Enter Payment with Cash Discount

This procedure is used to enter payments for supplier invoices that have a cash discount.

Note that you can follow up cash discounts by selecting a column template with value type 61 (local currency) or 161 (foreign currency) in ‘Accounts Payable. Display Balances’ (APS225).

Before You Start

  • FAM function AP20 with at least one detail record is defined in ‘FAM Function. Open’ (CRS405).
  • Accounting types for accounting event AP20 are defined in ‘Accounting Rule. Set’ (CRS395).
  • The total amount paid is entered in ‘Suppl Payment. Enter Manual’ (APS120/E).
  • The supplier invoice has a cash discount

Follow These Steps

  1. Complete steps 1 to 3 in Enter Payment. (APS120/F) is displayed.

  2. Select one of the following alternatives:

    • If the payment is made within the specified cash discount terms of the invoice, go to step 3
    • If the payment is a partial payment with cash discount or you wish to apply a cash discount despite late payment, go to step 5.
  3. Select option 1 = ‘Full payment’ for the invoice record. (APS120/K) is displayed. If the amount paid agrees with the invoice amount minus the correct cash discount, press Enter to confirm.

  4. The total amount to distribute on the F panel is reduced by the amount entered. Note that the entire total must be entered before ending the procedure.

  5. To apply a cash discount to a partial or late late payment, select option 11 = ‘Partial payment’ in (APS120/F), enter the amount paid in (APS120/H), and press Enter. On the F panel, select an appropriate accounting option for the invoice (accepted cash discount variance) or leave the supplier invoice partially paid.

  6. Press F3 to update the ledgers.

Note on Partial Payments with a Cash Discount

When entering a partial payment, the net payment amount entered is set in relation to the total net payment amount of the invoice, in order to calculate the pro rata cash discount with that percentage as follows:

Net partial payment amount entered (‘Partial paid amount’)/Net total payment amount * Total cash discount amount allowed = ‘Cash discount amount’ allowed for partial payment.

Example: You have received an invoice in the amount of SEK 1,000 and cash discount 5% (SEK 50). You want to pay half the invoice and to apply a cash discount. The result of the calculation above is:

(475/950) * 50 = SEK 25.