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 processed during the payment phase. The discount is recorded automatically if the settings are correctly defined and the cash discount tolerance is met.
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 data 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.
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.
Below is an example of a €100 invoice with a 2% cash discount. The amount to be paid would be €98.
Keywords: cash discount, payment term
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