You can use the Vendor Invoice Disc. table to define the rules for discounts and service charges used by different vendors. You can define the conditions for vendor invoice discounts in LCY for domestic vendors and in foreign currency for foreign vendors.
The program calculates a vendor invoice discount according to a set of terms that include a minimum amount, discount percentages and service charges. You set up a code for the discount in the Invoice Disc. Code field on the vendor card. To set up the terms, click Related Information, point to Purchases, and then click Invoice Discounts on the vendor card.
After you have set up the code and the associated terms, the program can calculate the invoice discount when you register an invoice from the vendor. The total amount of your purchase from the vendor determines whether or not you receive an invoice discount or a service charge according to the terms you defined in the Vend. Invoice Disc. table. The program uses the currency code on the invoice header to find the invoice discount terms in the corresponding currency.
The program calculates the invoice discount when you click Related Information, point to Functions, and then select Calculate Invoice Discount. If there is a check mark in the Calc. Inv. Discount field in the Purchases & Payables Setup window, the amount will be calculated automatically. Click here to learn when the automatic calculation will occur.
You must first set up the invoice discount code. There are two ways to do this:
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The code will be created automatically when you set up a new vendor. The program uses the vendor number as a default by copying the contents of the No. field to the Invoice Disc. Code field. This method is good if each vendor uses different rules for granting an invoice discount.
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You can replace the default code by entering a code that you have defined yourself. This is the code that you will enter in the Invoice Disc. Code field for all the vendors that have the same terms for granting an invoice discount.
Each time either you or the program creates a new code, you must set up the terms for it in the Vendor Invoice Disc. table. If you enter an existing invoice discount code on a new vendor card, the terms that you have already set up for this code will apply to the new vendor.
You can find the Vendor Invoice Disc. table by clicking Related Information, pointing to Purchases, and then clicking Invoice Discounts on the vendor card . In the table you can define:
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the currency for which the invoice discount terms on the line are defined. If you do not define invoice discount terms in a specified currency, the program will convert the LCY terms to foreign currency and use these terms.
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the minimum amount that an order must total for the particular invoice discount and/or service charge to come into effect.
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the invoice discount percentage.
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a service charge.
Here is an example of how you can complete the Vendor Invoice Disc table:
| Currency Code | Minimum Amount | Discount % | Service Charge |
|---|---|---|---|
LCY | 0 | 0 | 50 |
LCY | 4,000 | 3 | 0 |
DEM | 11,000 | 4 | 0 |
You receive a service charge of LCY 50 if your purchase is below LCY 4,000. If your purchase is LCY 4,000 or more, you avoid the service charge and receive a discount of 3%. On a purchase of DEM 11,000 or more, you avoid the service charge and receive a discount of 4%.
When you click Related Information, point to Purchases, and then click Invoice Discounts from a vendor card, the terms associated with the code for the particular vendor will be displayed.
The program also contains another discount table for purchases: Purchase Line Discount.