Dynamics Community Forum Thread Details

How do I reduce risk of taking vendor credit early

We order product with a net due date months in the future: Say we order and receive the product in December, and payment must be remitted in July 15th. During this 7 month period we may have hundreds of orders all with a net date of July 15th; and hundreds of other orders with net dates for 15 days from invoice date; all from the same vendor. The vendor may also issues a credit invoice to us with a net due date July 15th for returns, incentive programs being reached, and other reasons, all tied to particular items ordered during this time.

Ethically we should not take the credits as we haven't paid the initial invoices. Yet since the credits are not tied to previous invoices Dynamics automatically applies those credits when we pay invoices with earlier net dates.

We don't want the vendor to stop sending the credits as we use them to adjust the cost of inventory. So without these notices we cease to be competitive on pricing and begin to lose business. We are attempting to work with the vendor to try and isolate a mutually beneficial manner to ensure we continue to get the credit information and at the same time, not take advantage of the fact the system is letting us take the credits early.

The more I think about the problem the more I think what we are receiving isn't so much a credit, as we havne't paid anything yet, its a discount on future money owed.

So... is there a way to prevent us from taking the vendor credits early? Is there a way to flag the credit so that we don't accidentally take it early and the system doesn't automatically take it early?

I read somewhere that we can link the credit at time of entry to the product invoice. But it didn't indicate if this is done, if Dynamics ignores it when we run the check run processes. Is linking the credit invoice to the initial product invoice(s) the best method or am I missing something?

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