KB- Expired discounts taken when credit memos are applied after discount date in Payables Management in Dynamics GP

My credit memo is dated before the discount date, but I didn't apply it until AFTER the discount date, but the expired discount was still taken.  Why? 

Consider these examples: 

Discounts Available are being tracked.

• EXAMPLE 1:  (credit memo dated before discount date and applied after discount date)

1/1/2017 Credit memo $100.00  (not applied)

3/1/2017 Invoice $100.00 (with 2%10/net 30 payment terms)  Discount due 3/11/2017

Build checks on 4/1/2017 and automatically apply credits.  $2.00 put in 'Terms Taken'

Result:  Invoice full paid, but $2.00 credit still avallable to be taken.

             Even though the records were applied on 4/1/2017, it still used the document date of 1/1/2017 as the apply date, so it qualified for the discount to the invoice.  

• EXAMPLE 2:  (credit memo dated after discount date and applied after discount date)

4/1/2017 Credit memo $100.00  (not applied)

3/1/2017 Invoice $100.00 (with 2%10/net 30 payment terms)  Discount due 3/11/2017

Build checks on 4/1/2017 and automatically apply credits.  $2.00 put in Terms Available (not taken)

Result:  Invoice is fully applied and moved to history.  No amount due, no discount taken. 

              The applied date used was 4/1/2017, so it did not qualify for the discount. 

By design.   The credit was received prior to the discount date, so the system is going to take the discount regardless of when the actually apply process was done. 

The system will take the discount if the document date of the credit memo is before the discount date.  This is the design of the automatic apply process.  Manually applying the credit memo gives the user the opportunity to override the discount taken. 

Work Around:

To have the discount not taken, you must manually apply the credit memo (under Transactions | Purchasing | Apply Payables Documents),  Enter $0.00 for the TERMS TAKEN and enter the full amount for the APPLY AMOUNT.  Click OK. 

query words:
credit note credit return  credit memo's memos credits old discounts gp