Take a cash discount outside the cash discount period

This article provides two scenarios that show how a cash discount can be taken even if the payment is made outside the cash discount period.

On June 28, April creates an invoice for 2,000.00 for vendor 3052. The invoice has a cash discount of 1 percent if the invoice is paid in 14 days.

Use cash discount option = Always

April creates a payment on July 1, which is after the discount date. April opens the Settle transactions page to view the transactions that can be settled.

April marks the invoice for payment. No cash discount is taken, because the payment is after the discount date. However, the vendor has given April approval to take the cash discount anyway. Therefore, April changes the value in the Use cash discount field to Always.

Mark	Use cash discount	Voucher	Account	Cash discount date	Due date	Invoice	Amount in transaction currency	Currency	Amount to settle
Selected	Always	Inv-10030	3052	6/28/2020	7/12/2020	10030	-2,000.00	USD	-1,980.00

Discount information appears at the bottom of the Settle transactions page.

Field	Value
Cash discount date	7/12/2020
Cash discount amount	-20.00
Use cash discount	Always
Cash discount taken	0.00
Cash discount amount to take	-20.00

Date to use for calculating discounts = Selected date

If both the invoice and the payment have been posted, the cash discount can still be taken when the transactions are settled on the Settle transactions page. April changes the value in the Date to use for calculating discounts field to Selected date. April then enters a date of June 28, which is in the cash discount period for the invoice. That date is used to calculate a cash discount for the transaction. On the Settle open transactions page, April sees that, by default, the full discount of 20.00 appears. The invoice line shows that the amount to settle is 1,980.00.

Mark	Use cash discount	Voucher	Account	Cash discount date	Due date	Invoice	Amount in transaction currency	Currency	Amount to settle
Selected and highlighted	Normal	Inv-10030	3052	6/28/2020	7/12/2020	10030	-2,000.00	USD	-1,980.00
Selected	Normal	APP-10030	3052	7/15/2020	7/15/2020		500.00	USD	500.00

Discount information appears at the bottom of the Settle open transactions page. The discount amount that is taken is 20.00, because the amount to settle for the invoice is the default amount, 1,980.00.

Field	Value
Cash discount date	7/12/2020
Cash discount amount	-20.00
Use cash discount	Normal
Cash discount taken	0.00
Cash discount amount to take	-20.00

April updates the value in the Amount to settle field to 500.00. The value in the Cash discount amount to take field is calculated as 5.05.

Mark	Use cash discount	Voucher	Account	Date	Due date	Invoice	Amount in transaction currency	Currency	Amount to settle
Selected and highlighted	Normal	Inv-10030	3052	6/28/2020	7/12/2020	10030	2,000.00	USD	-500.00
Selected	Normal	APP-10030	3052	7/15/2020	7/15/2020		500.00	USD	500.00

Discount information appears at the bottom of the Settle open transactions page. The value in the Cash discount amount to take field is 5.05, because the amount to settle for the invoice was changed to the payment amount, 500.00.

Field	Value
Cash discount date	7/12/2020
Cash discount amount	-20.00
Use cash discount	Normal
Cash discount taken	0.00
Cash discount amount to take	-5.05