![]() I am a Microsoft Certified Dynamics Professional with 6+ years of full lifecycle Dynamics AX implementations experience (Analysis – Deployment). If you go to the transaction form you will see that a new transaction was created with Transaction type = Cash discount If you go to the Settle open transaction form, you will see that created payment line settled with the invoice and Cash discount will be applied ![]() Payment will include invoice amount minus cash discount Go to the Payment journal line and click Payment proposal > Create payment proposal Invoice the purchase order by clicking Invoice button on the Action pane on the Invoice fast tabĬreate payments in the payment journal (Account payable > Journals > Payment journal). Go to Account payable > Setup > Payment > Cash discountsĭo not forget to specify Cash discount in the Purchase order header (Note: If you already specified Cash discounts on the vendor, then this field will be filled automatically)Ĭonfirm the order by clicking Confirm button on the Action pane on the Purchase fast tab If we pay after 10 days, you must pay the full $1,000 amount. In other words, if we pay in 10 days or less, the invoice can be settled for $995 instead of $1,000. If we pay the invoice within 10 days of receiving it, we might be able to deduct 0.5%, or $5, from the payment. Imagine that our company bought some services or goods and received a $1,000 Net invoice. Let’s say that vendor give us a 0.5% cash discount if the invoice is paid within 10 days. Build strong relationships with vendors – The sooner you pay a vendor what you owe, the more likely that vendor will be to work with you in the future.The discounts add up over time to save you a significant amount of money, particularly if several of your suppliers offer the discounts. Reducing the risk of non-payment or late payment.Īlthough, the obvious one for customer is saving the customer money, there are couple more. ![]() Here’s how a vendor can benefit by offering early payment discounts: These discounts are called as early payment discounts (also known prompt payment discounts/cash discounts).Įarly payment discounts are beneficial for customers as well as for vendors. The vendor can propose offer incentives to encourage us to pay before the invoice due date. ![]()
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