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Take more than the calculated discount for a vendor payment

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This article walks you through a scenario where a cash discount is taken for an amount that's more than the discount that was originally available on the invoice. This scenario might occur if an organization comes to an agreement with the vendor to pay a smaller amount on the invoice.

Vendor 3051 gives Fabrikam a cash discount of 4 percent if an invoice is paid within seven days. On June 29, April enters an invoice for 1,000.00. The vendor lets April take a discount of 60.00 instead of the default discount of 40.00 that's available for the invoice. April records a one-time payment by using the Accounts payable payment journal and enters the vendor for the payment. April then opens the Settle transactions page, marks the invoice, and changes the value in the Cash discount amount field to 60.00.

Mark Use cash discount Voucher Account Date Due date Invoice Amount in transaction currency Currency Amount to settle
Selected Normal Inv-10040 3051 6/29/2025 7/29/2025 10040 1,000.00 USD 940.00

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

Field Value
Cash discount date 7/12/2025
Cash discount amount 60.00
Use cash discount Normal
Cash discount taken 0.00
Cash discount amount to take 60.00

April posts the payment journal. The invoice is fully settled by using a payment of 940.00 and a discount of 60.00.