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Hi - hope someone can help.
I have a new customer who wants settlement discount for a Vendor to be taken against the Net amount of the Invoice not the Gross amount. They do not want the VAT to be discounted.
Scenario:-
Invoice received for a Nett amount of £1000, VAT is standard 20% = £1200 Gross
Settlement discount applied to payment terms is 3%.
In the General Ledger Setup, i have unticked Payment Disc Excl VAT and I have ticked Adjust for Payment Discount. In the testing I have been doing the invoice posts:-
Net - 1000.00
VAT - 200.00
Gross - 1200.00
When invoice is paid within terms, discount available is calculated at 3% of £1200 = £36.00, therefore paying £1164.00.
My customer is expecting it to calculate 3% of the Net amount, therefore £30 discount, paying £1170.00
Are there any other options I can test?
Thank you
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Hi..
I think this can be set in 'Structure' setup.
Take a look by creating new tax structure.
|
Code |
Calculation Order |
Type |
Tax/Charge Group |
Tax/Charge Code |
Calculation Type |
Calculation Value |
CVD |
CVD Payable to Third Party |
CVD Third Party Code |
Quantity Per |
Base Formula |
Include Base |
Include Line Discount |
Include Invoice Discount |
Check the bolded area..
Something may work
Hi Julie,
when the flag is set and the customer pays a new invoice, what is the payment discount possible in the customer/vendor ledger entry? Apparently the payment discount possible is one thing that is calculated differently (at posting time) when using this option. It also means that entries posted before setting this flag will have a too high payment discount possible when you want to pay it. The VAT correction on application will be off, though.
The easiest way to correct it would be to run a batch over all open entries and recalculate payment discount possible after setting the flag.
with best regards
Jens
Hi Julie,
You can go to GL Setup and check the Pmt. Disc. Excl. VAT check box.
If you need more information, press F1 to access the help page for this function.
Hope this helps! :)
But the help says you have to tick Payment Disc Excl VAT.
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