Walkthrough: Exclude an item for payment discount

Article03/08/20242 min read

Let us consider, the item, 1050, BEER CRONUS PREMIUM CAN 33CL, should be excluded in the calculation of payment discount. Normally the payment discount would be 2 according to the selected payment term code but according to the setting it will now be zero.

Setup item as excluded for payment discount

  1. Select the Search icon , enter Items, and then choose the related link.
    The Items list page opens.
  2. In the No. Field, select 1050.
    The Item Card page opens.
  3. On the Drink-IT Foundation FastTab, turn on the Excluded for Payment Discount toggle. This will exclude the calculation of payment discount for the item, 1050.
Note

You can also set the Excluded Payment Discount for the line types such as G/L Account, Resource, and Item Charges by turning on the toggle or selecting the checkbox on the related pages.

Creation of Sales Order with an Item excluded for payment discount

Let us consider creating the sales order for customer 10000 with a payment discount of 2% with the item, 1050, which has been excluded for payment discount.

  1. Select the Search icon , enter Sales Orders, and then choose the related link.
    The Sales Orders list page opens.
  2. On the action bar, select New.
    The Sales Order card page opens.
  3. Fill in the necessary fields.
  4. In the Sell-to Customer No. field, select 10000 and in the Payment Term Code, enter 1M(8D).
  5. On the Lines FastTab, in the No. field, select 1050 with Quantity of 1 and Unit Price 100. This inherits the value from the item card, 1050, which is excluded from the calculation of payment discount.
Note

Similarly, the data from the G/L Acccount, Resource or Item Charge are inherited during the creation of sales or purchase document lines.

Posting of the sales order

  1. On the Sales Order card page, on the action bar, select Post.
  2. Select Ship and Invoice and then OK.
    The selected Sales Order gets posted.
  3. Go to the Posted Sales Invoices list page.
  4. Select the required No.
  5. On the action bar, select Find Entries.
    The Find Entries page opens.
  6. On the Related Entries section, select Cust. Ledger Entry.
    The Customer Ledger Entries page opens.
  7. The Original Pmt. Disc Possible and Remaining Pmt. Disc. Possible fields are 0.
Note

Similarly, it works with purchase documents.

Required VAT Setup

You can create a separate VAT Posting Group for each classification where items, item charges, general ledger accounts or resources are excluded for payment discounts.

Also, create a VAT Posting Setup for each combination of the VAT Business Posting Group with the excluded VAT Posting Group.