The user guide for cash discount explains how to add a payment term containing a cash discount to a purchase invoice and how it is handled during the payment phase. The discount is recorded automatically if the settings are correctly defined and the cash discount tolerance is met.

You can handle the cash discount on a purchase invoice by selecting Purchases > Purchase invoices and opening the desired purchase invoice.

If a payment term with a cash discount has been selected for the purchase invoice during invoice processing, the discounted amount is suggested for payment if the cash discount date according to the payment term has not yet passed. If the cash discount date according to the payment term falls on a public holiday, the payment is made with the discounted amount on the next business day, and the entries are also recorded with the discounted amount. If the cash discount date has already passed, the system suggests the open amount of the invoice for payment. A payment processed according to the payment term, where the cash discount is considered, is automatically processed from the bank statement when the payment feedback material is specified on the bank statement, and the discount amount and dates remain within the cash discount tolerances set in the company's basic information. Otherwise, the payment is processed as a partial payment, and any possible discount must be recorded manually.

  • Select in invoice processing a payment term with a cash discount for the purchase invoice.
  • Check that the cash discount date according to the payment term has not yet passed if you want to use the cash discount.
  • Approve the purchase invoice when the payment term containing the cash discount has been selected.
  • Make the payment in the payment phase:
    • If the cash discount date has not passed, the discounted amount is suggested for payment.
    • If the cash discount date falls on a public holiday, the payment is made with the discounted amount on the next business day, and the entries are recorded with the discounted amount.
    • If the cash discount date has passed, the system suggests the open amount of the invoice for payment.
  • Make sure that the cash discount tolerances (discount amount and days) set in the company's basic information are met.
  • Make sure that the payment feedback material is specified on the bank statement so that the payment containing the cash discount is processed automatically from the bank statement.
  • Record any possible discount manually if the payment is processed as a partial payment and the cash discount does not meet the tolerances.

The cash discount payment term must be added to the invoice before the invoice is approved so that the program can offer this during the payment phase, and the cash discount is automatically reconciled once the bank statement containing the payment arrives at the company.

  • Add the cash discount payment term to the purchase invoice before the invoice is approved.
  • Approve the invoice only after the payment term containing the cash discount has been selected.
  • Wait for the bank statement containing the payment to arrive at the company, at which point the cash discount is automatically reconciled if the conditions are met.

Below is an example of a €100 invoice with a 2% cash discount. The amount to be paid would be €98.

Frequently asked questions

How do I get the cash discount suggestion to appear in the payment phase?
You will see the cash discount suggestion when you add a payment term containing a cash discount to the purchase invoice during invoice processing before the invoice is approved, and the cash discount date has not yet passed.

What happens if the cash discount date has already passed?
If the cash discount date has already passed, the system suggests the open amount of the invoice for payment without the cash discount.

How is the cash discount recorded automatically from the bank statement?
The cash discount is recorded automatically from the bank statement when the payment has been processed according to the payment term, the payment feedback material is specified on the bank statement, and the discount amount and dates remain within the cash discount tolerances set in the company's basic information.

What does it mean that the payment is processed as a partial payment?
The payment is processed as a partial payment if the cash discount does not remain within the cash discount tolerances set in the company's basic information or the payment feedback material is not specified on the bank statement. In this case, any possible discount must be recorded manually.

Why is the cash discount not reconciled automatically?
The cash discount is not reconciled automatically if the cash discount payment term has not been added to the invoice before the invoice is approved, the cash discount date has passed, or the cash discount does not meet the cash discount tolerances set in the company's basic information.

Keywords: cash discount, payment term 

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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