Payment Discounts

You can have discounts applied automatically or apply them manually.

If you elected to offer discounts when applying payments (that is, you selected the Apply Discounts check box in the AR Initialize Receipt form), the system automatically applies the payment discount (and tax discount if allowing tax discounts) for each item as long as:

  • a discount 'offered' exists (that is, the discounts were specified during invoice entry);

  • payment is applied before the discount date specified on the invoice;

  • the amount of the payment covers the entire balance.

If you are applying a payment after the discount date, you can still enter discount amounts manually.

If discounts were not offered on the invoice or if you are using the Allow Discounts Taken on Receipts option (AR Company Parameters form), you can only enter discounts by selecting the Remove Input Restrictions check box. See Payment Receipt Overrides.

Note: You can have the system automatically set the Disc Taken for each line by placing focus in the Apply Amount column and pressing Ctrl + W.

Applying Tax Discounts

If you selected the Allow TaxDisc on Invoices & Receipts check box in AR Company Parameters), the system calculates the tax discount amount during invoice entry. When applying payments, if you elected to apply discounts, the system automatically takes the tax discount along with the payment discount, as long as the discount date is within the period specified by the customer's payment terms and the amount of payment covers the entire balance. If these conditions are not met, or you are applying payments manually, you must enter tax discounts manually.

If payment and tax discounts were not offered, or you selected the Allow Discounts Taken on Receipts check box (which prevents the calculation of payment and tax discounts during invoice entry), you can still manually take the discounts. However, because Cash Receipts restrictions disallow the entry of payment and tax discounts greater than the 'offered' discounts, you will need to override the input restrictions in order to enter the discount amounts. This is done by selecting the Remove Input Restrictions option, and then manually entering the payment and tax discount amounts.