Credit Memo Payment Discount

aarond · 2006-07-31

Hi all,

I have a client who uses 3.70 and I have a query on Payment Discounts on Credit Memos.

They have Payment terms set up so as the they have:
'Calc. Pmt. Disc. on Cr. Memos Field' CHECKED

When the Credit Memo (100) is posted it shows a potential discount figure
(10) but when they try to apply the Credit Memo - it is trying to apply the full amount of the Credit Memo - without taking the discount out.

What I am asking - is there something I am missing on the entry details? Possibly the CM was posted when the Check wasn't appplied, but I can't see anything in the details of the entry.

The dates are correct, well within the possible dates. They are discounting the CM for the customer.

Can anyone advise, as I seem to be going round in circles!! Standard Navision should handle discounts in the Credit Memos.

Thanks
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kriki · 2006-07-31

[Topic moved from Navision Financials forum to Navision forum]

aarond · 2006-07-31

Hi all

I am just interested if anyone's clients actually use this functionality??

Cheers
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Alex_Chow · 2006-07-31

Not common in the US to have payment discount on credit memos.

If I was a company that is given a credit memo, of course I would want to apply it or receive a check ASAP.

Having a payment discount means you're punishing the customer for not claiming their credits. Which seems very unusual...

aarond · 2006-07-31

I thought that it was unusual, but this client likes to use it!!

Navision does indicate the level of potential payment discount to be taken from a CM.

I'm ](*,) with this one to be honest!

aarond · 2006-08-02

I've sorted it - Standard Navision can reduce the CM if a CM is part of an allocation which includes a payment where the customer has taken the discount - to ensure the whole allocation balances.

Alex_Chow · 2006-08-02

One problem I can see that your client getting into is when the discounted credit memos are applied, their customers will call and argue about that credit memo. This will probably cause more headaches and manpower to handle than what it's worth.

This goes along the lines of applying finance charges to late invoices. It's seems good on paper, but you almost never collect on those. And when you do collect, you would've spent a lot of overhead and the customer will probably hate you. #-o

themave · 2006-08-02

aarond wrote:

I've sorted it - Standard Navision can reduce the CM if a CM is part of an allocation which includes a payment where the customer has taken the discount - to ensure the whole allocation balances.

That makes since, thanks for the update. We don't use that and I am glad our vendors don't also.

Because we take the discount on the invoice if it is available. Which is fair since they are offering us a discount to pay it early. If they tried to take it back because we had a defective part and we returned it I would not be happy, true I took the discount, but I also received a defective part and had a lot of hassle associated with that. And they have had use of my money for a while since I have already paid the invoice. If they tried to take the discount back, I would charge them an inconvience fee, and an interest fee for the time they had my money.

aarond · 2006-08-03

The client is changing to discounted prices and staying away from the CM discounts!! Thank goodness!!!

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