AX 2012 Cash Discount and Settlements - TechNet Blogs

What’s new? 

Tips & Tricks

1. What’s new ? 

Content 

‣ 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. What’s 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. What’s 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. What’s new? – New fields


Tips & Tricks 

1. What’s 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. Within the Cash Discount terms / Settlement is posted with the payment 

b. Out of the Cash Discount terms / Settlement is posted with the payment 

c. Within the Cash Discount terms / Settlement is posted with “Settle open 

transactions” form 

d. 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 



Transaction:


Tips & Tricks 


b. Out of the Cash Discount terms/Settlement is posted with the payment 



- Cash Discount will NOT be accepted as the Payment is received out of Cash 

Discount term 

Payment journal Functions Settlement: 

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 





- Cash Discount will NOT be accepted as the Payment is received out of Cash 


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 





- Cash Discount will be accepted although the Payment is received out of Cash 



Combination of “Use Cash 

Discount = Always” and“Full 

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 





- Cash Discount will be accepted although the Payment is received out of Cash 



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: 

Transaction: 

Freetext invoice of total 11.900 EUR / Payment (on account) of 11.424 EUR 


– Cash Discount will be accepted as the payment was within Cash Discount term 

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: Freetext invoice of total 11.900 EUR / Payment (on account) of 11.424 EUR 


– 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: 

Transactions: 

Freetext invoice of total 11.900 EUR / Payment (on account) of 11.424 EUR 


– Cash Discount will be accepted, although payment is out of Cash Discount term 

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. Settlements within the Cash Discount terms 

b. Settlements out of the Cash Discount terms 

2. 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 

a. Journal: Payment Journal 

b. Form: settle open transactions


Tips & Tricks 


1a. Settlement within the Cash Discount terms 

Scenario: 

Transactions: 

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 

Settlement of both vouchers and creation of a new open amount on customers account:


Tips & Tricks 



Result: 

Settlement of both vouchers and creation of a new open amount on customers account: 

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: 

Transactions: 

How to avoid Cash discount deduction on the credit note? 




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: 

Settlement of both vouchers and creation of a new open amount on customers account: 

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)

Check the customer account: 


Tips & Tricks 



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% 

Journal: Payment Journal 

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 

The payment (received 14.10.2011) is posted on Customers’ account with out settlement. 

Check the transactions on the Customer account: 

New balance of 

EUR 10.000 after 

settlement (see 1.b) 

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:

Close the form and post the payment Check the customer account: 


Tips & Tricks 

6. Additional Remarks – Tab “Cash Discount” 

Result: 

Cash discount is posted correctly – Invoice is settled with the payment. 

Balance is zero

AX 2012 Cash Discount and Settlements - TechNet Blogs

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