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R12: Discount Calculation On Invoice with Prepayment Has Been Applied is Considering Net Amount For Discount (Doc ID 1591371.1)

Last updated on DECEMBER 15, 2020

Applies to:

Oracle Payables - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

Users see the following strange behaviour when paying invoice (with discount) on which prepayment has been applied. Explaining it with an example

Suppose there is an open prepayment available to be applied worth 1000 $. This prepayment was made with Immediate payment term to vendor. After few days, users receive an invoice worth 5000 $ with the pay terms at 2%/10 NET 30. The payment team applies the prepayment on the invoice and now the balance owed to vendor reduces to 4000 $.

On the discount due date, users pay the invoice. They notice that the discount calculated during payment run is 80$ (4000 X 2%) and not 100 ( 5000 X 2%). Due to this the total invoice amount paid to the vendor incl prepayment is now 4920 instead of 4900 $.
 

Solution

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In this Document
Goal
Solution
References


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