We have customers that will calculate the Payment term discount, e.g. 10% 10 Days Net 30 on the gross invoice amount. I.e they calculate on the total invoice before discounts. How would you do this in IFS?
e.g. Total multi line invoice:
| Units | Price | Line Total | |||
| Line 1 | Sku1 | 24 | $ 1.25 | $ 30.00 | |
| Line 2 | Sku2 | 30 | 1.95 | 58.50 | |
| Invoice Subtotal | $ 88.50 | ||||
| Trade Discount | (8.50) | ||||
| Invoice Total | $ 80.00 | ||||
| Payment Terms | 10% 10 Days Net 30 | (8.85) | |||
| If Paid within 10 days | $ 71.15 | ||||
The calculation per the pay terms is ‘net amount’ and only allowed at 100%. I do not know how to accommodate a gross amount before discounts. Will rebates accomplish the same outcome?
Best- Christy
Rebates may not accomplish the same outcome as we would have to manage when the payment is received. Example: was the payment received within 10 days?
My thought is to configure rebates on the gross amount. The invoice is still at gross amount (pre line discount). The pay term will discount 10% on the payment within 10 days. The rebate (equal to order line discounts) could offset against the open AR items. It will look a little different to the customer as well as changing their current process flow but it will allow the pay discount on gross.
Thank you. That will not work for our customers.
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