line discount different way

ch.v.srinivasarao

Hi,
Thanks to every body
When u creating a sales order u give line discount. But in the line discount form u have starting date and ending date.
In general process I am explaining the line discount offer. In line discount form u give line discount i.e minimum quantity 15 , line dis = 5 %
U have line discount in that starting date and ending date. Starting date 06/28/07 and ending date 07/28/07
But my problem is when u give line discount to particular customer in sales order. U fill all remaining information and post that . then automatically all values post to g/l entries. That line discount will also post to G/L entries. This is actual process.
But companies are following in different way. That process is
U raise sales order and give line discount. After post that . Here that line discount should not post to related accounts. Because the the process is when a customer receive sales invoice, at the time of payment , he has to raise credit memo to get line discount what vendor entered in sales invoice . This Customer will raise credit memo after ending date of line discount that is 07/28/07. Again that vendor issue a credit memo for that line discount to customer. Then the customer will pay the remaining amount after deducting the line discount.
Here up to ending date vendor don’t issue credit memo. Just they metioned in line discount in sales order.
My doubts are:-
after posting a sales order automatically the line discount will post to G/L entries.
Again u create a credit memo , if u post that credit memo again it will post G/L entries.
Here u are posting two times for same amount. I am not understanding how to do this process in Navision.
How to create sales credit memo for that line discount
In sales & receivables setup u have one field DIRECT POSTING : No discounts
If you select No Discounts, the program will not post discounts separately but instead will subtract the discount before posting. Therefore, you will not see the discount amount in the Chart of Accounts window
If u select this it is not posting to chart of accounts. But every time u have to change this setup when u assign invoice discount.
Just give any body permanent solution with out changing set up option daily for line discount and invoice discount.
How create sales credit memo for line discount.
Please do help any body .

thanks and regards,

ssingla

Line discount by its very nature are supposed to be deducted in the invoice. If they are given thru credit memo they are not line discount. You can name as you wish but it is not line discount.
I am afraid u need to customize it.

ch.v.srinivasarao

Hi Sandeep Singla,

this is line discount. No doubt abou that. Every company follows this method around the world what expalin above.Just they mentioned the line discount in sales order, but through creditmemo they confirm line discount after ending date of line discount.
Please give Help.

thanks and regards,

AdamRoue

I am afraid your question is not very clear, but it seems to me you want to raise a credit for the discount given to the customer? If this is the case then this is an invoice to the customer for the discount they should not have received. This could be an item charge or direct to the discount GL depending upopn what you require to happen to the item.

However you seem to also be talking about a credit raised at payment, this is arguable early settlement discount. An invoice for $100 is $90 if paid 10 days before due, that sort of "discount".

I am afraid your issue is not very clear - could you tell us more simply what you are trying to achieve, or is it one of the above?

ssingla

I have seen this is few industries particularly in steel industry. The discount will be declared on the line items and will be declared for a period. The PO/SO will have the line discount but the discount will not be given at the time of invoicing but on a later stage when the price window is closed.
The buyer will prepare the statement of eligible discount and raise the credit memo.

I guess you requirement is exactly what I have narrated. if yes, then IMHO navision will not be able to handle this. You need to customize using the charge item with automatic application of related sales invoice/purchase invoice as the case may be.

ch.v.srinivasarao

Hi adam,
Not only steel companies following this procedure, any company follows this procedure
I expalined very clearly about the line discount issue how is processing in firms. any how i explained one more time clearly.

procedure :-
1. u create sales order u give line discount.
2. at the time of posting line discount should not post to related accounts.
in sales order just u mentioned the how much discount customer getting.
3.customer received sales invoice.
4. at the time of payment he has to raise credit memo to get line discount from vendor.
5. when vendor accepted that line discount at the ending date of line discount.(in sales line discount u define starting dat and ending date, based on this ending date)
6.customer will pay remaing amount.
6.Up to ending date customer has no chance to get line discount.
7.for example if customer ready to pay the amount immediately , then customer has to pay the total amount including line discount.
8 after line discount ending date customer will raise credit memo to get line discount.
This is the procedure.
now give solution how to stop posting sales line discount . How to raise sales credit memo.
give solution.
regards.

pranav.2204

pls clarify one more thing...
at abt tax calculation?.. are u using adjustfor payment discount in general ledger setup?
Regards
pranav

ch.v.srinivasarao

Hi pranav,



There is no relation to tax caluclation and adjust payment discount.U need not use above two functions.

Actually me dont know how to do this concept in navision . That's y i need help from experts.

thanks and regards.

modric

What you described is NOT a line discount, but "Payment Discount", at least from Navision point of view...

i.e., you give this discount only, if invoice is paid till specific date, if payment is done later, then full sum must be paid.