Dynamics Community Forum Thread Details

Hi everyone,

I’m trying to understand the intended accounting logic in Business Central around payment discounts, and also how to handle manual discounts at the time of receiving customer payment.

🔹 Scenario

Two posted customer invoices:
- Invoice 1: $1,082.50
- Invoice 2: $1,082.50
Total invoice amount = $2,165.00
Customer payment received = $2,165.00
Payment posted via Cash Receipt Journal
Payment applied using Apply Customer Entries

Invoice amount and payment amount are exactly the same.

🔹 What Business Central posts

In Apply Customer Entries, the field “Remaining Pmt. Disc. Possible” shows $100.00.

After posting, the G/L Entries show:

Account	Amount
Bank	+2,165.00
Accounts Receivable	-2,265.00
Payment Discount G/L	+100.00

This means:

A/R is cleared for $2,265.00
$100.00 is posted to the Payment Discount G/L
Cash received remains $2,165.00

🔹 What I’m trying to understand (conceptually)

Given that:

Invoice amount = $2,165.00
Payment amount = $2,165.00
There is no short payment

I’m trying to understand:

How should “Remaining Pmt. Disc. Possible” be interpreted when invoice and payment amounts are equal?
How does Business Central conceptually justify clearing Accounts Receivable for more than the invoice value?
Under what design assumption does BC treat the $100 as part of settlement rather than an over-application?

I’m looking to understand the intended system logic, not necessarily challenge the behavior.

🔹 Additional question: manual discount at payment time

My client’s expectation is slightly different:

If a $100 discount is being given at the time of payment, they expect the cash received to be reduced upfront.

In other words, they expect the posting to look like:

Account	Amount
Bank	+2,065.00
Accounts Receivable	-2,165.00
Discount / Adjustment G/L	+100.00

So my additional questions are:

How can we apply a manual discount at the time of receiving payment in Business Central?
Is there a supported way to reduce the Bank amount itself (for example via write-off, adjustment line, or discount line) instead of using the automatic payment discount logic?
What is the recommended approach when the discount is negotiated at payment time and not strictly based on payment terms?