Settlement discounts (journals) can be generated when payment is made within a period that allows for early payment settlement discounts. An early payment would generate a journal with details of the invoices and the rates that have been assigned. These settlement discounts (journals) can be used either to pay the current invoice or in future to offset other invoice(s). Only payment types that are defined in TMSAR/SD-PAYT will be eligible for settlement discount. Settlement Discount group codes for each eligible company and debtor class must be defined in TMSAR/SD-GRP with the rates for these groups in TMSAR/SD-RATE.
- In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry and then double-click Debtor Cash/Journal Entry. ARE005 Cash Entry payment selection panel appears.
- Select payment function CSH and click OK.
- Enter the header details and click OK. ARE005 Cash Entry payment detail panel appears.
- Allocate the payment to the invoice to be paid and click OK. ARE005H Settlement Discount Entry screen is displayed with the applicable discount.
- Enter the following settlement discount information, as necessary.
| Field | Description |
| Amount to pay | This is the amount of the invoice that is being paid excluding any applicable settlement discount. |
| Disc Rate% | This is the settlement discount rate applicable to the invoice as defined in TMSAR/SD-RATE based on the settlement discount group TMSAR/SD-GRP. You can also prompt to select the rate from any of the eligible rates available in this group or override the eligible rate. |
| Settlm Disc Amt | Amount of settlement discount i.e. the discount rate % multiplied by the amount to pay. |
| Apply | Use this flag against each invoice to indicate if the settlement discount is to be taken up immediately and allocated to the current invoice or allocated in future to other invoice(s). 1 = Current or ‘ ‘ = Future. It defaults to future but can be overridden. If the discount is to be applied on the current invoice then the customer would be short paying that invoice. |
| Rule | Depending on the Apply flag, Rule would display as ‘Future or Current’. |
| SD adj amt | Any adjustment amounts resulting from rounding issues can be entered here. |
- Accept or update the settlement discount rate and the apply flag as required and click OK. ARE210 Bank reference – Charge panel is displayed.
- Enter the payment details on ARE210 Bank reference – Charge panel and click OK.
| Note |
If the apply flag is set to future, then journals would be generated with the invoice and settlement discount details, which can be used in future to offset other invoice(s). This is displayed on the Debtor Transaction Inquiry screen. If the customer wishes to take the settlement discount on the current invoice, they can short pay by the settlement discount amount. In this instance change the Apply flag to current (on the Settlement Discount Entry panel) and the settlement discount would be applied to the current invoice. |
