Settle a partial customer payment that has discounts on credit notes
This article walks you through a scenario where a cash discount is taken on a credit note when the original invoice also had a cash discount.
Fabrikam allows customers to take cash discounts on partial payments and also on credit notes (credit memos). A cash discount can be taken on a credit note when the credit note is issued for an invoice that the customer took a cash discount on. Instead of providing a credit for the full amount, you can credit the customer's balance for an amount that excludes the cash discount percent that the customer took. The settlement parameters are located on the Accounts receivable parameters page.
Invoice and credit note
Customer 4035 has an invoice for 1,000.00 and a credit note for 100.00. Each document has a 1 percent discount if it's paid in 14 days. Arnie can view this information on the Customer transactions page.
| Voucher | Transaction type | Date | Invoice | Amount in transaction currency debit | Amount in transaction currency credit | Balance | Currency |
|---|---|---|---|---|---|---|---|
| FTI-10050 | Invoice | 6/28/2020 | 10050 | 1,000.00 | 1,000.00 | USD | |
| CCRN-10050 | Credit note | 6/28/2020 | CR-10050 | 100.00 | -100.00 | USD |
Settle a credit note with an invoice
From the Customer transactions page, Arnie opens the Settle transactions page. Arnie can use the Settle transactions page to settle the invoice and credit note. As part of the settlement process, Arnie views the cash discount dates and amounts. Arnie marks the two documents and then clicks Post to settle the transactions. There is a discount of -1.00 on the credit note, because Fabrikam allows for discounts on credit notes.
| Mark | Use cash discount | Voucher | Account | Date | Due date | Invoice | Amount in transaction currency | Currency | Amount to settle |
|---|---|---|---|---|---|---|---|---|---|
| Selected | Normal | FTI-10050 | 4035 | 6/28/2020 | 7/28/2020 | 10050 | 1,000.00 | USD | 990.00 |
| Selected | Normal | CCRN-10050 | 4035 | 6/28/2020 | 7/28/2020 | CR-10050 | -100.00 | USD | -99.00 |
Discount information appears at the bottom of the Settle transactions page.
- Cash discount date: 7/12/2020
- Cash discount amount: -1.00
- Use cash discount: Normal
- Cash discount taken: 0.00
- Cash discount amount to take: -1.00
The settlement will be 100.00, and will include a payment of 99.00 and a discount of 1.00.