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Discounts Taken not showing on all posting reports in Payables Management for Microsoft Dynamics GP


Symptoms

When automatically applying credit memos during the checkrun to invoices with payment terms, the resulting posting journals may not reflect all the discounts that were taken. The most popular complaint is the GL Distribution Summary report missing the amount of the discounts that were taken on the invoice and was fully applied to a credit memo during the checkrun. 

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Cause

This caused by how the discounts taken were designed to follow the payment document. The apply process is handled separately from the checkrun process. Specifically, when credit memos are automatically applied to invoices during the checkrun, the discounts taken for payment terms on those invoices follow the fully applied credit memo and move to history. The discounts taken on the partially applied or other invoices follow the check. Therefore, the resulting posting journals may have varying results, depending on whether that report shows the credit memo information in addition to the check information. 

EXAMPLE:
Consider this scenario:
Payment terms: 2%
Invoice #1 for $100 (Discount $2)
Invoice #2 for $100 (Discount $2)
Invoice #3 for $100 (Discount $2)
Credit memo for $125 (Fully applied to Invoice #1 during the checkrun)
Total Discounts Taken: $6 ($2 follows the credit memo, and $4 follows the check)
Check = $169

The total discounts taken are $6, but some reports only show $4 for the discounts that follow the check.  The discounts that follow the fully applied credit memo do not display on all the reports as follows: 

Computer Checks Posting Journal - Shows all discounts: $6
Distribution Breakdown Register - Only shows discounts that follow the check: $4
GL Distribution Summary - Only shows discounts that follow the check: $4
General Posting Journal (GL) - Shows all discounts: $6


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Resolution

The options are listed below:

Option #1 - If you are balancing the checkrun to what posted to GL, the easy work-around is to use the General posting Journal or Computer Checks Posting Journal instead. Do not use the GL Distribution Summary report* to balance to GL since the amount of all the discounts taken automatically during the checkrun are not reflected on this report. (*Or the user can just be aware that this report will be short by the amount in the Additional Distributions section as reflected on the Computer Checks Posting Journal. 
 
Option #2 - Manually apply the credit memo's to the invoices beforehand using the Apply Payables Document window. The discounts taken will be booked at the time they are applied, and will also follow the credit memo.  However, this keeps it outside of the checkrun. Turn off the option to automatically apply credit memo's during the checkrun. 


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Keywords: kbmbspartner, kbmbsmigrate, kbsurveynew, kb

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Article Info
Article ID : 2501363
Revision : 1
Created on : 1/7/2017
Published on : 8/5/2011
Exists online : False
Views : 82