AX 2012 Cash Discount and Settlements - Tips and Tricks

Whats new?
Tips & Tricks
Content
1. Whats new ?
New parameter and their functionality
New fields and their functionality
2. Goal of the functionality extension
3. Tests and other Experiences

4. Tips & Tricks
How to post standard scenarios
5. Tips & Tricks
Special scenarios in daily business
6. Additional Remarks on Tab Cash Discount
AX 2012 Cash Discount and Settlement

Tips & Tricks
1. Whats new? New parameters
New parameters are available in Accounts Receivable and
in Accounts Payable:
Cash Discount on partial payments
Cash Discount on credit notes
Both Parameters were created for AX 2012 and are back

ported to AX 2009 Rollup 5 (5.0.1500.2985)

Tips & Tricks
Accounts receivable (or Accounts payable) / Setup / Accounts
receiveable parameters ( or Accounts payable parameters)
Select Settlement:

Tips & Tricks
Calculate Cash Discounts for Partial Payments
Select this check box to allow discounts to be automatically calculated for partial
payments.
If this check box is selected and a user changes the value in the Amount to settle field in
the Open transaction editing form, the discount is automatically calculated and is
displayed as the default entry in the Discount amount to take field.
If this check box is not selected and a user changes the value in the Amount to settle field
in the Open transaction editing form, the default entry in the Discount amount to take
field is 0 (zero).
Your selection in this check box is used with the Normal option in the Use cash discount
field in the Open transaction editing form. If this check box is selected, the discount is
taken when the Normal option is used. When you select Always, the cash discount is
always taken, without regard for this field. When you select Never, the cash discount is
never taken, without regard for this field.

Tips & Tricks
Calculate Cash Discounts for Credit Notes

In Accounts receivable, a credit note transaction is a negative transaction with a
value in the Invoice field in the Free text invoice form, or a return in the Sales
order form. Select the Calculate Cash Discounts for Credit Notes check box to
allow discounts to be automatically calculated for credit notes.
If this check box is selected and a credit note is entered in the Open transaction
editing form, the discount is automatically calculated and is displayed as the
default entry in the Discount amount to take field.
If this check box is not selected and a credit note is entered in the Open
transaction editing form, the default entry in the Discount amount to take field
is 0 (zero).
If the check box is selected and you are in the Open transaction editing form,
the discount is taken when the Normal option is used. When you select Always,
the cash discount is always taken, without regard for this field. When you select
Normal, the cash discount is never taken, without regard for this field.

Tips & Tricks
What is happening when the new parameters are

activated?
If user changes an amount in the field Amount to settle
AX automatically starts to recalculate the Cash Discount
amount which is then shown in field Discount amount.
It is now available not only for invoices but also for credit
notes.

Tips & Tricks
1. Whats new? New fields
Form open transaction editing: This form is used for
settlements of every scenario where invoices, credit

notes and payments are posted on account.
New fields are:
In the upper grid: Settlement posting date
Date to use for calculating discounts

In the lower grid: Discount taken
Discount amount to take

Tips & Tricks
1. Whats new? New fields

Tips & Tricks
1. Whats new? New fields:
Settlement posting date

Tips & Tricks
Date to use for calculating discounts

Tips & Tricks
Discount amount
In the lower grid of the form open transaction editing you

will find the fields:
Discount amount:
This Field shows the maximum cash discount amount which can be taken, when the
payment/settlement is within the cash discount term
Discount amount to take:
This field shows the Cash Discount amount remaining to be taken for the activated
vouchers.
Both amounts are only proposed amounts and can be

changed.

Tips & Tricks
Discount taken / Discount amount to take

Tips & Tricks
2. Goal of the new functionality
1. Making the Settlements functionality more comfortable
and enable the user to post Cash Discount amounts also

for Credit notes and partial payments.
2. Resolving the known issues and bugs reported in former
versions of AX (AX 4.0 and AX 2009) as there were for
example:
Reversals of settlements
Display problems before, while and after the postings
Problems with settlements in foreign currencies

Tips & Tricks
3. Tests and other Experiences
1. Specification of the new functionality and resolving the
known issues and bugs from former Versions.

2. Testing phase 1 described the normal and easy
scenarios in Accounts receivable and Accounts payable,
created the scenarios and checked the results under the
perspective of:
Does the new parameters work properly?

Is this a known issue/bug and is it now resolved?
3. Testing phase 2 was checking the new appearing effects.
This is a still ongoing process.

Tips & Tricks
4. Scenarios: Effects on the normal standard scenarios
1.
Settlement of one invoice and one payment:

a.
b.
c.
d.
Within the Cash Discount terms / Settlement is posted with the payment
Out of the Cash Discount terms / Settlement is posted with the payment
Within the Cash Discount terms / Settlement is posted with Settle open
transactions form
Out of the Cash Discount terms / Settlement is posted with Settle open
transactions form

Tips & Tricks
4. Scenarios: How to post the normal standard scenarios
a. Within the Cash Discount terms/Settlement is posted with the payment
Scenario:
Freetext invoice with total amount of 11.900 EUR / Payment of 11.424 EUR /
Cash Discount = 10 Days 4 % (Cash discount amount = 476 EUR)
Payment journal Functions Settlement:

Tips & Tricks
a. Within the Cash Discount terms/Settlement is posted with the payment
Scenario:
Transaction:

Tips & Tricks
b. Out of the Cash Discount terms/Settlement is posted with the payment
Scenario:
- Cash Discount will NOT be accepted as the Payment is received out of Cash
Discount term
Amount to
settle is set by
default to the
full amount
As you can see,

no cash
discount
amount in the
fields here.

Tips & Tricks
Scenario:
- Cash Discount will NOT be accepted as the Payment is received out of Cash
Discount term
Transaction:
Result:
As expected the Cash discount is not posted and appears open on the customer /
vendor account.
Field Discount amount to take showed in the settlement form a zero amount
Cash discount amount was no longer proposed as the settlement date was out of
Cash discount term

Tips & Tricks
Scenario:
- Cash Discount will be accepted although the Payment is received out of Cash
Discount term
Combination of Use Cash

Discount = Always andFull
Settlement causes a full
settlement and a posting of Cash
Discount on the G/L account
Using Always Amount

to settle is changing to
the payment amount
EUR 11.424,00

Tips & Tricks
Scenario:
- Cash Discount will be accepted although the Payment is received out of Cash
Discount term
Result:
As wanted, Cash discount was posted correctly on the G/L account, although the
defaults in AX were set to zero amounts for Cash Discount which is correct until the
user decides to post different to the defaults. (Case by Case Decision)

Tips & Tricks
c. Within Cash Discount terms/Settlement is posted with settle open transactions form
Scenario:
Freetext invoice of total 11.900 EUR / Payment (on account) of 11.424 EUR
Cash Discount = 10 Days 4 % (Amount = 476 EUR)
Cash Discount will be accepted as the payment was within Cash Discount term
Accounts receivable select customer Collection Settle open transactions:

Tips & Tricks
c. Within Cash Discount terms/Settlement is posted with settle open transactions form
Scenario:
Cash Discount will be accepted as the payment was within Cash Discount term
Transaction:
Result:
Invoice and payment are settled to zero. Cash Discount is posted correctly on the G/L account. Payment
and settlement are posted with date 06/06/2011

Tips & Tricks
d. Out of Cash Discount terms/Settlement is posted with settle open transactions form
Scenario:
Cash Discount will be accepted, although payment is out of Cash Discount term
Accounts receivable select customer Collection Settle open transactions: (Settlement date =
06/30/2011):
Using Use Cash Discount =

Always Cash Discount will be
activated in the settle open
transaction form.
Click Update to post the
settlement
AX 2012 Cash AX 2012 Cash Discount and Settlement

Tips & Tricks
Scenario:
Cash Discount will be accepted, although payment is out of Cash Discount term
Transactions:
Result:
Although System date was set to 06/30/2011, the settlement was posted with date 06/26/2011, which is
the payment date. This is AX rule as the decision if Cash discount is accepted or not depends on the date
when the payment is received/created.

Tips & Tricks
Scenario:
We are taking the last scenario and reverse the settlement with session date
06/30/2011: Reversal of the former Settlement and new Settlement under
Settlement Posting Date = 06/30/2011 (Accounts receivable Select Customer Collections Closed transactions Activate the voucher and click button reverse)
and post the settlement again:
Result:
Closed date is now set to 06/30/2011

Tips & Tricks
5. Scenarios: Effects on specific scenarios which need adjustments
1.
Settlement of open amounts (invoices and creditnotes) without a

payment but because of payment advice:
a.
b.
Settlements within the Cash Discount terms

Settlements out of the Cash Discount terms
Settlement of remaining amount from 1b by deducting Cash Discount

4% - Journal: Payment Journal
3. Settlement of remaining amount from 1b by deducting Cash Discount
4% - Form: settle open transactions
4. Partial Payment with deduction of full cash discount in first partial
payment
2.
a.
b.
Journal: Payment Journal

Form: settle open transactions

Tips & Tricks
1a. Settlement within the Cash Discount terms
Scenario:
Freetext invoice of total 11.900 EUR / Credit note of total 1.900 EUR
Cash Discount = 10 Days 4 % on invoice = 476 EUR / on credit note = 76 EUR
Cash Discount Amount in total = 400 EUR
Transactions:
Settlement of both vouchers and creation of a new open amount on customers account:

Tips & Tricks
Result:
As long as the Cash Discount Term

is valid, you will find in the field
Amount to settle the Amount
deducted of Cash Discount
amount
Amount in transaction currency is calculated

here as follows:
Invoice =
EUR 11.900
- Credit note =
EUR 1.900
+Cash Discount on CRNote = EUR
76
= total
EUR 10.076
This works now as designed: The credit note is seen as a kind of partial payment.
As also the parameter is activated for calculate cash discount on partial payments the Cash discount is deducted on the Credit
note (EUR 1.900 EUR 76 = EUR 1.824). For that reason you will find EUR 10.076 in field Amount in transaction currency.
Normally Cash Discount happens just when a payment is received as this is the time an accountant is able to decide if Cash
Discount is allowed to be deducted or not.

Tips & Tricks
Scenario:
How to avoid Cash discount deduction on the credit note?

Transactions:
Depending on the status of Use cash Discount you receive different Amounts to settle:

Tips & Tricks
Mark both Vouchers with Use Cash Discount = Never and post the settlement:
Result:
The amount to settle shows now EUR 10.000 and the fields Discount amount and Discount Amount to take show Cash
Discount amount of Zero.

Tips & Tricks
Check the vouchers of this Transactions:
Result:
No Cash Discount is posted with the settlement.

Tips & Tricks
1b. Settlement out of the Cash Discount terms
Scenario:
Transactions:
Change the system date from August to 15.10.2011

Post the Settlement of the invoice and the creditnote:

Tips & Tricks
Result:
Although we are outside of the Cash Discount time the deduction of the cash discount on the credit note is posted. This is because the
creation of the credit note was within the cash discount terms of the invoice. As the credit note is treated as a partial payment when
posting the settlement, Cash Discount on the Credit note is deducted.
To avoid this, it is also necessary here to change status of Use Cash Discount from Normal to NEVER
In the next step the settlement is reversed (Accounts receiveables select Account Tab Collections Closed transaction editing)

Tips & Tricks
Check the customer account:
Create the settlement again and use the status Never for Use Cash Discount

Tips & Tricks
2. Settlement of the remaining amount from 1b and Payment by deducting Cash Discount 4%
Scenario:
For a certain reason customer paid the Invoice and the credit note by deducting Cash Discount of 4 % on 17.10.2011. The Accountant is
adviced to post the cash discount and to settle the payment and the remaining open amount.
Customers Payment = Invoice
EUR 11.900
- Cash Discount
EUR 476
- Credit Note
EUR 1.900
+ Cash Discount
EUR
76
Payment
EUR 9.600
Creation of Customers Payment and Settlement:

Tips & Tricks
Settlements Form:
Change Use Cash
Discount from Never
to Always
Change Amount to settle to

EUR 9.600
Field Discount Amount to take changes

automatically to EUR 400
Close the form and post the payment.

Check now the posting on the customer account:

Tips & Tricks
Close the form and post the payment.
Check now the posting on the customer account:
Result:
The cash discount is posted with the new amount of 400 EUR.

Tips & Tricks
Journal: Open transaction settlement
Scenario:
For a certain reason customer paid the Invoice and the credit note by deducting Cash Discount of 4 % on 17.10.2011. The Accountant is
adviced to post the cash discount and to settle the payment and the remaining open amount.
Customers Payment = Invoice
EUR 11.900
- Cash Discount
EUR 476
- Credit Note
EUR 1.900
+ Cash Discount
EUR
76
Payment
EUR 9.600
New balance of
EUR 10.000 after
settlement (see 1.b)
The payment (received 14.10.2011) is posted on Customers account with out settlement.
Check the transactions on the Customer account:
Payment
without
settlement

Tips & Tricks
On date 17.10.2011 the Accountant could clarify the issue and was adviced to post the missing amount of EUR 400 on Cash Discount:
Therefore he uses Accounts Receivable All Customers Select the right one Tab Collect Button Settle open transactions :
The remaining Amount to settle of EUR 10.000
has a Use Cash Discount = NEVER.
To post the Cash Discount of EUR 400 we need to

change this to Use Cash Discount = ALWAYS
and mark both positions:
The defaulted Amount to settle uses
only the Cash Discount connected to
the origin invoice (EUR 476) and
proposes EUR 9.524,00

Tips & Tricks
To post now the Cash discount of EUR 400 (instead of EUR 476) change the Amount to settle from EUR 9.524 to EUR 9.600:
Post the settlement and check the transactions on Customers account

Now you receive the following Infolog
Click Close and check the transactions

Tips & Tricks
The settle open transactions form is empty:
Transactions on Customers account:
Cash discount is now posted also for the origin

invoice and for the origin Credit Note

Tips & Tricks
4. Partial Payment with deduction of full cash discount in first partial payment
Scenario:
A customer received an invoice of EUR 119.000 with Cash Discount term 10 Days 4 %.
We agreed to accept a partial payment of 60 % of the whole amount and deduction of the full cash discount.
Second payment of remaining 40 % will be paid 2 months later (without any deduction)
Calculation:
a) Cash Discount 4% of EUR 119.000 = EUR 4.760
b) Partial Payment 1 = 60 % of EUR 119.000 = EUR 71.400
c) Payment amount for first partial payment = EUR 71.400 EUR 4.760 = EUR 66.640
The payment arrives within the cash discount term and will be settled with the open invoice partially while posting.

Tips & Tricks
On the settlements form mark the invoice and change the Amount to settle to EUR 66.640
It is also necessary to change Use Cash Discount from Normal to Always and find, that now also the fields Discount amount to
take and Discount amount to take in EUR are also filled with the full Cash Discount Amount of EUR 4.760:

Tips & Tricks
Close the form and post the payment:
Result:
The Cash discount is fully posted, the new open amount is exactly 40 % of the origin invoice amount.

Tips & Tricks
4.b Partial Payment with deduction of full cash discount in first partial payment
but with settle open transactions form
Scenario:
A customer received an invoice of EUR 119.000 with Cash Discount term 10 Days 4 %.
We agreed to accept a partial payment of 60 % of the whole amount and deduction of the full cash discount.
Second payment of remaining 40 % will be paid 2 months later (without any deduction)
Calculation:
a) Cash Discount 4% of EUR 119.000 = EUR 4.760
b) Partial Payment 1 = 60 % of EUR 119.000 = EUR 71.400
c) Payment amount for first partial payment = EUR 71.400 EUR 4.760 = EUR 66.640
The payment arrives the within the cash discount term and will be settled (out side of cash discount term) with the open invoice:

Tips & Tricks
On the settlements form mark the invoice and change the Amount to settle to EUR 66.640
Also change Use Cash Discount to ALWAYS:
Field Discount amount and field Discount amount to take show the full Cash Discount of EUR 4.760
Post the settlement

Tips & Tricks
The settlements form shows the new Amount to settle of EUR 47.600:
Check:
Field Use Cash Discount is set automatically to NEVER

Tips & Tricks
Check also the transactions of the Customers Account:
Balance of the Account = EUR 47.600

Cash Discount is posted correctly.

Tips & Tricks
6. Additional Remarks Tab Cash Discount
In case you cannot adjust the payment- and settlement amounts by using the Use Cash Discount : Always Never Normal, you can also
use the field Date to use for calculating Discounts or Tab Cash Discount
Scenario:
Create an invoice of 1.190 EUR without Cash Discount Term and a payment of 1.142,40 EUR which consists of a deduction of 4 % Cash
Discount (= 47,60 EUR)
On the Settlements form click Button Cash Discount and fill in with payment date and the Cash Discount amount of EUR 47,60:

Tips & Tricks
6. Additional Remarks Tab Cash Discount
Close the form and post the payment Check the customer account:
Result:
Cash discount is posted correctly Invoice is settled with the payment.
Balance is zero

AX 2012 Cash Discount and Settlements - Tips and Tricks

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Whats new?

Tips & Tricks

3. Tests and other Experiences

AX 2012 Cash Discount and Settlement

New parameters are available in Accounts Receivable and

Both Parameters were created for AX 2012 and are back

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

Calculate Cash Discounts for Credit Notes

AX 2012 Cash Discount and Settlement

What is happening when the new parameters are

AX 2012 Cash Discount and Settlement

Form open transaction editing: This form is used for

settlements of every scenario where invoices, credit

Date to use for calculating discounts

Discount amount to take

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

In the lower grid of the form open transaction editing you

Both amounts are only proposed amounts and can be

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

1. Making the Settlements functionality more comfortable

and enable the user to post Cash Discount amounts also

Problems with settlements in foreign currencies

AX 2012 Cash Discount and Settlement

1. Specification of the new functionality and resolving the

known issues and bugs from former Versions.

Does the new parameters work properly?

3. Testing phase 2 was checking the new appearing effects.

This is a still ongoing process.

AX 2012 Cash Discount and Settlement

Settlement of one invoice and one payment:

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

As you can see,

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

Combination of Use Cash

Using Always Amount

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

Using Use Cash Discount =

AX 2012 Cash AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

Settlement of open amounts (invoices and creditnotes) without a

Settlements within the Cash Discount terms

Settlement of remaining amount from 1b by deducting Cash Discount

Journal: Payment Journal

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement

As long as the Cash Discount Term

Amount in transaction currency is calculated

AX 2012 Cash Discount and Settlement

How to avoid Cash discount deduction on the credit note?

AX 2012 Cash Discount and Settlement

AX 2012 Cash Discount and Settlement