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AP Cash Discounts

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Posted on by MirandaM

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We wanted to use the AP Cash Discount functionality as a few of our vendors offer 1% 15 Days / Net 30 Days (and similar discounts). But, we noticed that the discount is applied to the ENTIRE invoice in Dynamics. Our vendors want this discount applied only to the Product total. They do not want the discount applied to Freight & Handling and Tax. I believe if we use the discount functionality as designed in AX, we would be underpaying our vendors. Anyone else face this issue? Any way around it?

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ZvikaR 61 on at

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RE: AP Cash Discounts

You can exclude tax from cash discount - that's a configuration.

As Satish said anything that is part of the "net" invoice, such as freight cannot be excluded.

If this is a high value business requirement for you, you can consider going into the trouble of defining/managing freight/fees as a type of "sales tax" (any fee can be defined through a sales tax code/group - it is just a matter how much all the extra effort in operating it is worth to you.
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Satish Panwar 14,641 on at

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RE: AP Cash Discounts

The only way around would be if separate invoices are recorded for purchase order product (PO Invoice) and freight (through invoice journals) and business would bless it (it would result in more invoices, more work for AP department in terms of reconciliation etc.) This option won't work if freight cost is allocated to the product cost via purchase orders. AP department may be able to work this out with vendors to lower the percentage a bit and just work with standard D365 functionality. Most of the systems where Freight and Purchase cost are recorded together won't provide this functionality for cash discounts.

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