Question on purchase invoice discounts by line

bspencer

Ladies and Gents, hello!

We are using Nav 4.0 SP3.

I am sure this question is not new, but I could not find the answer in past posts using my search string.

We have vendors set up with payment terms that include discounts. The AP clerk will create a purchase invoice based on the receipt lines of posted purchase order, then the clerk will manually add a GL freight line to the purchase invoice before posting it. We are not suppose to take a discount on the added freight line. However, because the purchase invoice has a payment term with a discount, the discount applies to the entire amount of the invoice.

The AP clerk is telling me that in the past, as long as the "Allow Invoice Disc." boolean stayed NO on the purchase line for that GL freight line, that the discount for the line would be skipped. It has been a long, long time since I have been asked to be a functional expert on purchase discounts, and I cannot remember exactly how this is suppose to work (presuming no modificaitons have been made to our system). My testing of the "Allow Invoice Disc." boolean indicates that it is trumped by the payment terms code. The only way I know to handle this type of thing is to go into the vendor ledger entries and manually update the "Remaining Pmt. Disc. Possible" field after posting the purchase invoice. They don't like this idea.

Is there some other way to do this? Specifically, is there a way to calculate discounts on some lines, and not others, when the purchase invoice has a payment terms code with a discount?

thanks for your time!

Savatage

I hear your problem. Apparently a vendor has given you terms with an available discount. 1%30 Net 31 (for example) But they are no allowing you to include freight in your final calculation.

For us - any (line discount) we use is based on the item being on special or we have reached a qty price break. This is different than a discount received due to paying on time (payment discount).

You could apply your discount per line and take no discount on payment but you'll have to always pay on (or close too) on time

If you don't want it to apply to each item - you can add a single G/L line to your po to "Purchase Discounts" (or whatever name you have in your g/l).

I'm curious how other handle this as well. Usually if given a payment discount we take whatever it calculates based on the invoice total. Now when the vendor gets the check they can decide if it's worth it to them to generate a new bill for the difference/make an email/get more prople involved just for a few measly $$ or they can just drop it. It sounds pushy by us but it also sounds penny pinching by them.

I would rather at the end of the year they send us a bill for the difference built up thoughout the year, so we can handle it once instead of jumping thru hoops for each bill. IMHO

ssingla

I remember doing it long time ago (some 4-5 years ago) when I was in employment. I don't have the database so can't check what exactly we did but I faintly remember that we did something with "Original Pmt. Disc. Possible" and "Remaining Pmt. Disc. Possible" when posting Purchase Invoice. It was not a perfect solution but our client was happy with that.