Payment Discount Accounts-Confusion

Deep · 2006-11-25

Hi all,

Please help me out. I am stucked at a point. I am unable to understand what are "Reductions in sales/purchase payment discount amounts"?

In Receivables Management-
Payment Disc. Debit Acc. field = the G/L account to which you want the
program to post granted sales payment discount amounts when you post
payments for sales with this particular combination of business posting
group and product posting group.

Payment Disc. Credit Acc. field = the G/L account to which you want the
program to post reductions in sales payment discount amounts when you
post payments for sales with this particular combination of business posting group and product posting group.

Please help me out by explaining me the meaning of "reductions" and in possible, an example of "reduction in payment discount amount"

Deep · 2006-11-27

No replies....

Cant anyone help me?????

Deep · 2006-12-02

still no replies. i am still stucked.

ara3n · 2006-12-02

Hello Deep.

Here is how how it works.

You create a sales invoice with payment terms net 1M(8D), which is setup for due date in 1M and if the customer pays within 8 days he gets discount % of 2 percent.

Once you post the invoice. In customer ledger you'll see Pmt. Discount Date field in and "Remaining Pmt. Disc. Possible" set to the amount based on 2 percent.

So now you go to cash receipt journal and you select the customer and select the applies doc the new invoice, you'll see that it will apply only the 98 percent of the invoice, since you are paying within 8 days. Once you post it the 2 percent will hit "Payment Disc. Debit Acc."
If you pay after 8 days then the customer has to pay the full amount.

ssingla · 2006-12-02

But when these accounts are used???????? ](*,) ](*,) ](*,)

ara3n · 2006-12-02

when you post the payment. what do you mean when they are used?
Are you using two user ID on mibuso?

Deep · 2006-12-04

hi ara3n,

In the context of receivables, i understood the "Payment disc debit acc." field. But what is the use of "Payment disc credit acc." in receivables as it shows" reductions in discout".

I wanted to know the meaning of "reductions in sales payment discounts" for receivables.

ssingla · 2006-12-04

Dear Friends,

I have tested the payment discount in the following scenario:

1. Invoiced and payment received within the due date :: Result : Payment discount debit account debited with the discount amount.
2. Invoiced and payment received after the due date :: Result : No debit and credit entry for discount created in the system.
3. Invoiced and partial payment receivced with due date and partial payment received after due date :: Result : No debit and credit entry for discount created in the system.

So I wonder how this discount credit will come into picture.

Deep · 2006-12-04

Hi,

thats the issue. can somebody comment please?

Payment Discount Accounts-Confusion

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