Hi, Please could anyone help? I have set up various payment terms including settlement discounts. I have ticked the check box re Payment Discounts Excluding VAT. The program is working out the Discount correctly for the Invoice Document but not for the Cash Allocation and the GL. For example: A Payment Term of 5% discount I raise a sales invoice for 100.00. Vat calcs at 17.50 and gross 117.50. The program quotes the invoice amount payable at 111.63 which is 100.00 less 5% so 95.00 net. This is all fine. But when I go to allocate the cash, the program asks for the payment of 112.50 which is the original amount of 117.50 less the 5.00. I need the program to give me the discount on the net and not on the gross. I have checked the GL setup and Sales and Receivables and I have ticked all the relevant boxes. Please could anyone help? Thanks a lot Vicky
Hi Vicky What version are you on? I cannot remember what happens here but want to make sure I look at it in your version!
Hi Vicky Navision is calculating the payment amount correctly. By selecting Payment Discounts Excl VAT, the system will look at the $100 amount of the invoice, calculate 5% so the amount payable is $95 plus the VAT amount of $17.50, so the total to pay with settlement discount is $112.50. If you select “Adjust For Payment Discount” instead of “Pmt Disc Excl VAT” the settlement (payment) discount will be as you would expect, that is total to pay after discount would be $111.63. This is how it works in the Australian version. Cheers Peter