Managing Cash Discounts

Some vendors offer cash discounts when paying within a specified period of time according to the due date. In this case, Payment Management supports making vendor payment suggestions based on the cash discount setup.

Prerequisites for using cash discounts in the payment journal.

In order to use cash discounts, you must determine how you wish to manage due dates and payment discounts on the Payment Terms setup page. You can read more about how to set up payment terms on Microsoft Docs. When payment terms have been defined, the payment terms codes can be assigned to the vendor card under the FastTab Payments.

To use the cash discount when making vendor payment suggestions

  1. Use the Search for page or report icon and search for Payment Journals, then select the related link. This opens a payment journal.
  2. In the page header in the field Batch Name, choose the payment journal, for which to wish to enable cash discounts.
  3. On the payment journal, navigate to the action bar and select Prepare > Payment Journal Setup. This opens the payment journal setup page.
  4. On the payment journal setup, go to Posting Date and enable the setting Find Payment Discounts.

Support for payment discounts has now been enabled for the payment journal and Payment Management will use the cash discount setup, to determine the posting date when creating vendor payment suggestions.

See also

How to set up payment terms (Microsoft Docs)