EAP: Discount Amount Is Based on Merchandise Amount and not on Gross Amount, Even Though the Discount Is Configured to Be Accounted at Gross (Doc ID 2992379.1)

Last updated on DECEMBER 18, 2023

Applies to:

Symptoms

Discount Amount is based on Merchandise Amount and not on Gross Amount, even though the discount is configured to be accounted at Gross.

Steps:

    1. Create a new Payment term: 3N30 - 3% Disc in 10 days, Net 30.

Navigation: Setup Financials/Supply Chain > Product Related > Procurement Options > Payment Term-Single Payment

    2. Create a new voucher with below details:

Navigation: Accounts Payable > Vouchers > Add/Update > Regular Entry

• Inv date: 10/16/2023
• Pay term: 3N30
• Line Total: 180
• Miscellaneous: 34.2
• Total: 214.2

    3. Save the voucher.

    4. Run Voucher Post.

    5. Click on Transfer to Payment Terms button. It shows below values:

• Payment Terms ID: 3N30
• Due Date Control: Terms
• Basis Date Type: Inv Date
• Basis Date: 10/16/2023
• Discount Due Date: 10/26/2023
• Due Date: 11/15/2023
• Discount Amounts Control: Terms
• Account at: Gross
• Discount Amount: 5.4

NOTE: Discount is accounted at Gross and the Discount Amount is 5.4.

    6. Check payment tab.

The Discount Amount 5.4 is based on Merchandise Amount (180) and not in Gross Amount (214.2) even though the discount is configured to be accounted at Gross:

Computation DISCOUNT PERCENTAGE AMOUNT
Computed @ Gross 214.2 * 3% = 6,426
Computed @Net 180 * 3% = 5,4

Expectation is the discount amount to be computed @ Gross 214,2 * 3% = 6,426

Cause

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