Taking Purchase Discounts
Accounts Payable Payment Selection provides the ability to select invoices based on either the due date or the availability of prompt payment discounts. Most companies actively seeking purchase discounts will have a mix of outstanding invoices, some carrying discounts, others (such as the telephone bill) with no discount.
For example, company XYZ has invoices with discounts and some without discount terms. They want to pay invoices through 10/10/15. The following steps are required to complete this process:
- Select invoices through 10/10/15
- Take discounts with dates from 10/10/15 through 10/20/15.
Click the Preferences option and set the ‘Take expired discounts?’ check box accordingly.
Remember that this is a toggle switch! This means that you can set it to take discounts and then add a group of invoices. These invoices will take payment discounts.
Then you can toggle it off and add another group of invoices. This time the group of invoices added won’t take expired payment discounts.