Credits with Cash Discount

[former_member336095]

Scenario:

- Customer invoice reflects a prompt pay cash discount of 2%.

- Customer pays the invoice and takes advantage of the prompt pay discount.

- Customer returns the product for a full credit.

- Credit memo is created w/ reference to the invoice and copies the terms to the credit document.

From the SD side is possible to determine if the customer took advantage of the prompt pay discount and issue the credit memo only for the amount the customer actually paid?

Essentially reflect the actual amount the customer can deduct?

[Former Member · Accepted solution]

just an option - define new condition type for your discount and make it statisitcal (inactive) in the original invoice, then when credit memo request is created change it to active if customer paid the invoice and therefore got this discount... in this case your credit amount will be reduced by the discount amount.

[former_member336095 · Accepted solution]

We have the statistical condition on the invoice and it copies to the credit memo.

I guess if we were to activate that condition on the credit memo how would that impact accounting?

I am trying to sort through now how the accounting postings need to be.

Do you know if there is a recommended approach here? I believe on other projects this was sorted out on the FI side?

andi

[Former Member · Accepted solution]

If the discount condition was statistical on the original invoice -> it means that original invoice was posted to accounting without this discount, right ?

How do you adjust accounting posting for the invoice if you customer is eligible for the discount and used it ?

I think if you make this condition active in credit memo request if your customer used this discount option - your posting to accounting for credit memo will take discount amount into consideration and you'll credit the customer actual amount he paid.

[former_member336095 · Accepted solution]

On the original invoice the accounting for the invoice is as follows:

Debit Customer 100

Credit Revenue -100

Debit discounts on 3rd party sales 2

Credit Discount Receivable -2

[Former Member · Accepted solution]

I think the original question is still valid, in not wanting to credit the customer the full amount if they took a cash discount on the original invoice. To the 11/2/06 response, I think it would be difficult to code in if the original invoice had the cash discount taken. How would you code this? what tables and values would you be looking for? There are so many ways to apply cash.