Credit Memo against an invoice with net terms keeps taking discount

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Posted on by Richard Wheeler

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Client sends an invoice off to a customer for $1,000 with payment terms of 1% Net 10. The customer pays a month later and is not entitled to the discount but takes it any way. Our client, when doing the cash receipt, does not write off the $10 but applies the $990 to their customer's account. So now they have an invoice remaining balance of $10. Our clients goes to enter a credit memo for that $10 and if they try to apply it directly to that invoice, as soon as they click the invoice to which to apply it, GP then applies the 1% Net 10 to the credit memo and messes up the distributions as it adds a discount available distribution line. This looks like a bug as GP should not be applying any discount as the invoice is long past its qualifying date for the discount.

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Richard Wheeler 75,730 on at

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RE: Credit Memo against an invoice with net terms keeps taking discount

This is GP 2015 R2. In tracing down all the distributions I can see that GP is handling this correctly. Since the customer was months late in paying but took the discount anyway, the Discount Available amount was still sitting there and was waiting for the final payment to come along so it could credit that account.
Mariano Gomez 26,225 on at

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RE: Credit Memo against an invoice with net terms keeps taking discount

Microsoft Dynamics GP version and build number, please?