Take more than the calculated discount for a vendor payment

This article walks you through a scenario where a cash discount is taken for an amount that is 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 in 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 is available for the invoice. April records a one-off payment by using the Accounts payable payment journal and enters the vendor for the payment. April then opens the Settle transactions page and 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	6/29/2020	7/29/2020	10040	1,000.00	USD	940.00

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

Field	Value
Cash discount date	7/12/2020
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.