Settle a partial vendor payment that has discounts on credit notes
This article walks you through a scenario where a credit memo is settled against an invoice.
Fabrikam’s vendors give cash discounts on credit notes. Vendor 3050 lets Fabrikam take a cash discount of 1 percent if an invoice is paid in 14 days.
Invoice and credit memo
On June 29, April creates an invoice for 1,000.00 for vendor 3050. On July 2, April creates a credit note for 200.00. From the Vendors page, April opens the Settle transactions page. April can use the Settle transactions page to mark both the credit note and the invoice for settlement. A discount of 2.00 is calculated on the credit note. Therefore, the total value of the credit note is reduced to 198.00.
| Mark | Use cash discount | Voucher | Account | Date | Due date | Invoice | Amount in transaction currency | Currency | Amount to settle |
|---|---|---|---|---|---|---|---|---|---|
| Selected | Normal | Inv-10070 | 3050 | 6/29/2015 | 7/29/2015 | 10070 | -1,000.00 | USD | -990.00 |
| Selected and highlighted | Normal | CR-10070 | 3050 | 7/2/2015 | 7/29/2015 | 200.00 | USD | 198.00 |
Discount information for the credit note appears at the bottom of the Settle open transactions page.
| Field | Value |
|---|---|
| Cash discount date | 7/13/2015 |
| Cash discount amount | 2.00 |
| Use cash discount | Normal |
| Cash discount taken | 0.00 |
| Cash discount amount to take | 2.00 |
April clicks Post and then reviews the completed settlement. April sees that 198.00 of the credit note was applied, and a discount of 2.00 was taken. Therefore, the total is 200.00.
| Mark | Use cash discount | Voucher | Account | Date | Due date | Invoice | Amount in transaction currency | Currency | Amount to settle |
|---|---|---|---|---|---|---|---|---|---|
| Selected and highlighted | Normal | Inv-10070 | 3050 | 6/29/2015 | 7/29/2015 | 10070 | -1,000.00 | USD | -200.00 |
| Selected | Normal | CR-10070 | 3050 | 7/2/2015 | 7/29/2015 | CR-10070 | 200.00 | USD | 198.00 |
April can review the vendor transactions on the Vendor transactions page by selecting a vendor on the All vendors page and then, on the Action Pane, click Transactions. On this page, April sees that the invoice has a balance of -800.00. April also sees a credit note for 198.00 and a discount of 2.00.
| Voucher | Transaction type | Date | Invoice | Amount in transaction currency debit | Amount in transaction currency credit | Balance | Currency |
|---|---|---|---|---|---|---|---|
| Inv-10070 | Invoice | 6/29/2015 | 10070 | 1,000.00 | -800.00 | USD | |
| Inv-10071 | 7/2/2015 | CR10071 | 200.00 | 0.00 | USD | ||
| DISC-10071 | Cash discount | 7/2/2015 | 2.00 | 0.00 | USD | ||
| DISC-10071 | Cash discount | 7/2/2015 | 2.00 | 0.00 | USD |