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
