Here is a suggestion for future versions that would be very helpful to us.

We currently have the option in AR and AP to calculate base for discount with or without tax. The problem is that some of our customers / vendors calculate the discount base with the tax and others without. Since we can only set the system up one way or another, we have to override the calculation at least half of the time. It would be great if we could decide on an individual vendor or customer basis if we want the base for discount to calculate with or without tax.

Hi Susan,

Just so I understand, you are writing off small differences when applying cash based on the different ways your customers are calculating their early payment discounts? Perhaps allowing an easy way of doing that would be more generally useful? For example, to write off interest that has been charged to an account.

Why would you need this on a vendor by vendor basis? I can see it for customers.

You should encourage your customers to upgrade to a more flexible accounting system!

We have some vendors that allow us to take our discount on the total after tax and others that don't allow it, but the company profile in AP only gives us the option to choose one or the other for ALL vendors.

For example:

Vendor A gives us terms of 1% 10 Days (calculate base for discount with tax)
Vendor B gives us terms of 1% 10 Days (calculate base for discount without tax)

Vendor A gives us a $1,000 + $130 HST = $1,130 - Cheque total = $1,118.70 ($11.30 discount)
Vendor B gives us a $1,000 + $130 HST = $1,130 - Cheque total = $1,120.00 ($10.00 discount)

Given that in Canada you are not allowed to discount the GST/HST the existing setup should work for all vendors and customers (tax inclusive discounts are not allowed). Given the large number of new features we would all like to see in Adagio I don't think this qualifies as one of them.

The tax amount doesn't change, only the discount amount.

Softrak must be aware that there are some vendors that include tax for the discount base and some that don't or they wouldn't have made that option available in the Company Profile. All I'm getting at is that not all vendors are consistent as far what they allow for calculation of the discount base. I'm sorry that Douglas feels that it's not worth Softrak's time. I wasn't expecting Softrak to put this at the top of their priority list. We can easily manually calculate discounts and override the system calculation. I'm only communicating, as Softrak has ask me and other end users to do, our experience with Adagio software and ideas that might be helpful for future releases based on our business use.

Perhaps the indicator of whether to include the taxes as part of the discount base should be part of the payment Terms.

That would be great!

Like I say, it's is not a big problem. Just thought I'd throw it out there fyi.