R12: AP: When Accounting the Payment, the Discount Is Charged to Wrong Account After Adjusting the Paid Invoice (Doc ID 3025733.1)

Last updated on MAY 30, 2024

Applies to:

Symptoms

When PO matched invoice is adjusted after payment was accounted, the payment discount is accounted to wrong account.
Tax amount for these adjustments entries is 0 and the discount amount is now booked to the invoice distribution charge account which is the accrual account instead of the discount taken account.


STEPS
-----------------------
The issue can be reproduced at will with the following steps:
#1. Setup: Discount Method – Prorate Tax
Setup: Allow Adjustments to Paid Invoices : Yes
Setup: Discount Taken
#2. Create Purchase Order
QTY = 100
Price = 100
#3. Create invoice and match it to PO
QTY = 10
Price = 1000 in order to have Invoice Price Variance (IPV) created
Make sure you select payment term
Provide first discount date and amount
#4. Validate/approve/account the invoice -- IPV is created
#5. Pay the invoice -- Discount is taken
#6. Account the payment
#7. Clear the payment
#8. Re-account the payment
#10. Adjust the AP invoice in order to avoid IPV
Discard line 1
Match the invoice with same PO
QTY = 100
Price = 100 in order to don't have IPV
#11. Calculate tax
#12. Re-account the AP invoice and its payment

Example:

Discount Taken Account = 01-000-Discount Taken-0000-000

Row Labels                                           Sum of Net
Cash                                                    -10720
    01-000-Cash-0000-000                      -10720
Cash Clearing                                        0
    01-000-Cash Clearing-0000-000          0
Discount                                               -80
    01-000-Accrual-0000-000                   -80
    01-000-Tax-0000-000                        0
    01-000-Discount Taken-0000-000        0
Liability                                                10800
    01-000-Liability-0000-000                  10800
Grand Total                                           0

The expectation is to have amount on Discount Taken Account set up on Financials Options.
Here is posted on Accrual account combination.

Changes

Cause

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