Spanish Cash Discounts Functionality Simplified in Microsoft Dynamics 365 Finance and Operations.

Dear Dynamics 365 Lovers,

Today another day and another blog to empower us with knowledge sharing.

In this blog I have articulated about a very interesting feature which is available in Spanish country for cash discounts in transactions within Microsoft Dynamics 365 Finance and Operations.

Business Scenario

Usually, cash discounts are calculated during the settlement process for customer or vendor open transactions by the standard way of working and function within MSD365 FO.

However, in Spanish country, cash discounts are calculated during the invoice booking process for the following documents:

• Purchase orders
• Sales orders
• Project invoices
• Sales quotations
• Ledger journals
• Invoice journals
• Free text invoices

 lets explore with passion~ 

Step by Step Configuration

Pre-requisite-

This feature is only available in the Spanish localization, hence make sure your legal entity's primary address is in Spain, or localized functionality is used as “Spain”

Steps to configure

1: Enable the parameter Cash discount is applied in the invoice in General ledger parameter – Under Sales Tax- tax options 

2: The function is designed by the two possibilities

A: We can use Cash discounts from the standard cash discounts function, if required, check this Microsoft documents to create Cash discounts https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/cash-discounts

B: We can just simply provide "Discount percentage" in to invoice page itself.

To achieve this, we need to setup “Accounts for automatic transactions”  for Customer cash discounts and vendor cash discounts into the General ledger- Posting setup- Accounts for automatic transactions

This will make sure, when we add discount rate, those will post into the set main accounts 

The configuration is done

Operations and reviewing transactions

Let’s proceed with one example of free text invoice (applicable scenarios are addressed already into the business scenario above)

Scenario A:

Here we just select "Cash discounts" from the drop down in Free text invoice

Cash discounts transactions will be posted with the free text invoice and customer balance will be adjusted, in this case we don’t need to adjust cash discounts in payment as already that is adjusted.

See yellow marked option

Posted transactions

The free text invoice will be posted with the transactions of cash discounts we selected from the drop down.

Scenario B:

Here we just select the "Discount percentage" whatever is applicable on this free text invoice.

See yellow marked option

The free text invoice will be posted with the transactions of cash discounts we selected in the cash discounts rate.

This is it, I hope this has been a nice learn for you as it was for me.

Will come back with another interesting topic soon, stay tuned.