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#61878 - 09/20/19 08:52 AM AP Discount question (9.3A)
Steve Schwartz Offline
Adagio God

Registered: 03/10/02
Posts: 4444
Loc: Wynnewood, PA
A client has the following situation (simplified) to which I don't have a ready answer:

A vendor sent an invoice dated 9/1 for $1,000, terms 2%10, net 30. The vendor also issued a credit note unrelated to this invoice for $1,100 dated 9/2.

On the check run dated 9/5, the vendor is not selected, since the balance due is negative.

The vendor now sends another invoice for $1,000 dated 9/8, same terms.

On the check run dated 9/12, the vendor is now selected, since the balance due is $900. However, the 2% discount is taken only on the second invoice, so the net pay is $880. Really, the discount should be applied on both invoices, for a net pay of $860, even though technically the first invoice is more than 10 days old.

Here is the client's question to me:

"Is there a way systematically for those invoices that should have gone last week to reduce the outstanding credit by the discounted amount instead of the original invoice amount other than manually applying them?"

Thanks

Steve

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#61880 - 09/20/19 10:54 AM Re: AP Discount question (9.3A) [Re: Steve Schwartz]
Patricia B. Offline
Adagio Maestro

Registered: 06/26/08
Posts: 1108
Loc: Langley, BC
Hi Steve:

I am assuming you are talking about check run, not payroll run. I think for this to work properly, the credit note needs to be on hold until applied to an specific invoice so it is not included in the check run.
_________________________
Patricia Balbuena Cotlear
AP SMART SUPPORT
236 991 3060





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#61883 - 09/20/19 01:04 PM Re: AP Discount question (9.3A) [Re: Patricia B.]
Steve Schwartz Offline
Adagio God

Registered: 03/10/02
Posts: 4444
Loc: Wynnewood, PA
Hi Patricia

I don’t think you are understanding the issue. Can you please re-read and try again.

Thanks

Steve

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#61887 - 09/20/19 03:27 PM Re: AP Discount question (9.3A) [Re: Steve Schwartz]
Patricia B. Offline
Adagio Maestro

Registered: 06/26/08
Posts: 1108
Loc: Langley, BC
Steve:

I see what you mean. I don't think there is anything in the current versions.

I think you still need to apply them manually. How the system would know where and when do you want to apply an unapplied credit note?
_________________________
Patricia Balbuena Cotlear
AP SMART SUPPORT
236 991 3060





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#61888 - 09/20/19 03:45 PM Re: AP Discount question (9.3A) [Re: Patricia B.]
Softrak Support Online   happy

Adagio Action Team

Registered: 03/09/99
Posts: 11294
Loc: Vancouver, BC Canada
Thanks for your insights, Patricia.

Because the terms code was defined to offer a discount only for 10 days, generating the payment list in system checks 12 days later will follow those rules and not offer to automatically deduct the discount. It can be edited manually. That technically part is everything here.

Ideally this would have been caught on the check run on Sept 5, but the rules also state that if the sum of the generated transactions (invoices, unapplied credits, prepayments, etc) is zero or less for a vendor, then a check is not issued. If the credit note was meant to be completely independent to the invoice, current program behaviour cannot differentiate that. If the credit note was not meant to get in the way of paying that invoice early and getting the discount, it needed to be taken off the payment list as I believe Patricia was trying to assist with.

You could also have used Payment Control to edit the Discount Date of that first invoice to Sept 13 and get the discount included. But that also takes a manual step.
---
Are you looking for a feature enhancement to system checks, to generate the payment list in a different way? Such as an option to not load unapplied credit notes or prepayments in the pre-check register? Or something different? I'm thinking of areas that would have made the Sept 5 check run be able to pay the invoice, rather than areas for the Sept 12 check run to ignore the Terms Code rules. We're working on Payables 9.3B right now.
_________________________
Regards,
Softrak Tech Support

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