sales tax/discounts setup

My client wishes to award early payment discount based upon the total invoice amount including sales taxes. The Client would like his sales tax liability to be reduced when the discount is granted. We are having no success in accomplishing this in Navision. We have done the following. GL/General Ledger Setup/ The adj for payment discount flag is on. GL/ Sales Tax/ Jurisdictions The adj for payment discount flag is on for all jurisdictions GL/Tax Posting Group / Tax posting setup Business group - blank Product group - blank Type tax - Sales tax The adj for payment discount is empty as warning is issued to use the tax jurisdictions The cash receipts journal will not post as it calims that the posting groups are not set up.

I did the same setups as you did (2.60 CA database) and got the same results. I was trying to take discount on a previously posted invoice that was posted under different discount settings. When I created a new posted invoice and then entered a cash receipt, the discount was based on the amount including tax and the receipt posted. The tax liability account was reduced accordingly as well!