Scenario: Settle a partial customer payment before the discount date with a final payment after the discount date

Article
11/29/2021

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Fabrikam sells goods to customer 4027. Fabrikam offers a cash discount of 1 percent if the invoice is paid in 14 days. Invoices must be paid in 30 days. Fabrikam also offers cash discounts on partial payments. For information about these setup parameters, see About parameters for settlements in Accounts receivable and Accounts receivable parameters (form).

Invoice for 1,000.00 on June 25

On June 25, Arnie enters and posts an invoice for 1,000.00 for customer 4027. Arnie can view this transaction in the Customer transactions form. (Click Accounts receivable > Common > Customers > All customers. Select customer 4027. On the Action Pane, click Transactions.)

Voucher	Transaction type	Date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Balance	Currency
FTI-10020	Invoice	6/25/2015	10020	1,000.00		1,000.00	USD

Partial payment for 297.00 with a discount on July 2

Customer 4027 wants to settle 300.00 of this invoice on July 2. The payment is eligible for a discount, because Fabrikam offers discounts on partial payments. Therefore, customer 4027 pays 297.00 and takes a 3.00 discount. Arnie can create a payment journal for this payment by opening the Accounts receivable Payment journal form. He selects a journal name, clicks Lines, and then enters a line for customer 4027. Arnie then clicks Functions > Settlement, so that he can mark payments for settlement.

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency debit	Currency	Amount to settle
Selected	Normal	FTI-10020	4027	6/25/2015	7/25/2015	10020	1,000.00	USD	297.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date	7/09/2015
Cash discount amount	10.00
Use cash discount	Normal
Cash discount taken	0.00
Cash discount amount to take	3.00

Arnie posts this payment. The invoice now has a balance of 700.00. Arnie can view this transaction in the Customer transactions form. (Click Accounts receivable > Common > Customers > All customers. Select customer 4027. On the Action Pane, click Transactions.)

Voucher	Transaction type	Date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Balance	Currency
FTI-10020	Invoice	6/25/2015	10020	1,000.00		700.00	USD
ARP-10020		7/1/2015			297.00	0.00	USD
DISC-10020		7/1/2015			3.00	0.00	USD

Remaining payment for 700.00 on July 11

Customer 4027 pays the rest of this invoice on July 11, which is after the discount period. In the Settle open transactions form, a discount amount is not displayed in the Estimated cash discount field, and the value in the Cash discount amount field is 0.00. When customer 4027 pays the remaining 700.00, no additional discount will be taken.

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency debit	Currency	Amount to settle
Selected	Normal	FTI-10020	4027	6/25/2015	7/25/2015	10020	700.00	USD	700.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date	7/09/2015
Cash discount amount	0.00
Use cash discount	Normal
Cash discount taken	3.00
Cash discount amount to take	0.00

If Arnie changes the value in the Use cash discount field to Always, the Calculate cash discounts for partial payments setting is overridden, and the discount is taken. The payment amount is 693.00, and the discount is the remaining 7.00.

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Currency	Amount to settle
Selected	Always	FTI-10020	4027	6/25/2015	7/25/2015	10020	700.00		USD	693.00

Discount information is shown at the bottom of the Settle open transactions form.

Cash discount date	7/09/2015
Cash discount amount	7.00
Use cash discount	Always
Cash discount taken	3.00
Cash discount amount to take	7.00

Arnie changes the value in the Use cash discount field back to Normal, because he is not letting this customer take the remaining discount of 7.00. For information about the Use cash discount field, see Settle open transactions - customer (form).

Arnie then posts the payment. When Arnie opens the Customer transactions form, he sees that the invoice has a balance of 0.00. He also sees that there are two payments. One payment is for 297.00 and has a 3.00 discount, and the other payment is for 700.00.

Voucher	Transaction type	Date	Invoice	Amount in transaction currency debit	Amount in transaction currency credit	Currency
FTI-10020	Invoice	6/25/2015	10020	1,000.00		USD
ARP-10020		7/1/2015			297.00	USD
DISC-10020		7/1/2015			3.00	USD
ARP-10021		7/11/2015			700.00	USD

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Scenario: Settle a partial customer payment before the discount date with a final payment after the discount date

Invoice for 1,000.00 on June 25

Partial payment for 297.00 with a discount on July 2

Remaining payment for 700.00 on July 11

See also

Additional resources