Payment Discount - Always Take It (Purchase Ledger)

Jonathan2708

Hi,

I have a client who receives varying payment discounts from their suppliers. Most of the payment discount periods are the same as the actual payment terms e.g. 30D Due Date Calc, 30D Discount Date Calc, 2% Discount. However my client wants the NAV payments module to always take the payment discount when calculating the payments, even if the payment is being made late (if the supplier objects then they negotiate).

Is the best way to achieve this to just set the "Discount Date Calc" to something like 99Y so that it's always within the payment discount period? Or is there a better way?

Any comments greatly appreciated,

Jonathan

ara3n

You could use Invoice discount instead of Payment discount.

David_Singleton

ara3n wrote:

You could use Invoice discount instead of Payment discount.

Yes I totally agree.

If the company is taking the discount irrespective of the payment terms, then it is an invoice discount, NOT a pyament discount. A lot of companies really screw up their own internal business process, becasue they try to believe that they do things differently than how they actually do them.

Just tell them to look at what they are actually doing, and they will see that this i so. Also recording this as a payment discount means they will be incorrectly reporting their AP on the balance sheet. So then and auditor will come in and tell them to accrue the discount and reverse it when they actually take the discount, and of course their comment will nbe "why doesn't Navision do this standard etc etc.

Just get them to do it the right way form the start instead of trying to fix the mess down the line.