Discounts Setup

The BusinessPlus AP Discounts process provides flexibility for determining how AP discounts will be handled. Three types of discounts are available:

1. Adding discount terms directly into an invoice
2. Volume discounts
3. Early payment discounts

Discount Terms

Define the discount terms and the calculation of the invoice immediately reflects the Disc. Terms (Invoice tab of any AP page, e.g., APOHBTUB, APOHININ, etc.).

Volume Discounts

Volume discounts are entered on a Purchase request and represent a discount that the vendor offers on a given product when the purchased quantity exceeds a quantity predetermined by the vendor. Multiple discount levels may be defined by the vendor for the same product so that greater discounts may be provided when greater quantities of the product are purchased.

Early Payment Discounts & Discounts Lost

The Disc Terms and Disc Amt fields on the Invoice tab of any AP page are for discounts from the Purchase Order or for regular discounts from the vendor (also known as a Volume Discount). "Early Pay" discounts do not display in an AP page.  Early pay discounts show on the set proof and will post according to their posting strategy.  The early discount will apply when the check date is before the "Discount Date" that is documented on the invoice (oh_disc_dt.oh_dtl).  If the check date is after the Discount Date, it is a lost discount. If there is a regular discount also on the invoice, it will still apply until the Due Date.

When using early payment discounts, an invoice's due date can be configured on the vendor's PEUPPE record, Vendor tab, Miscellaneous settings, Due Days field. Guidance for those settings are described in the next few sections. Note that common code APOH/DUEDATE can be configured to provide a warning when attempting to process invoices outside of a defined number of days.

The functionality described below provides an automated method of taking early payment discounts when available and keeping track of discounts lost.

The early payment discounts and discounts lost feature relies mainly on the configuration within the PEUPPE page, per vendor. Two additional options are available:

1. Display Early Pay Discounts on output reports by defining common code APGN/SETTINGS (Associated Codes (1) must also contain a value of QPDISCOUNT). If this code is present, when the invoices are entered, and a proof report is run, the proof report will show lines in the invoice totals that are related to the Early Pay Discount. If this common code is not present, the Early Pay Discount fields will not appear on the proof report as shown below, and no discount will be taken when the invoice is processed, regardless of the discount information set up for the vendor.
2. Configure Discounts Lost via posting strategies within GLUTSPSI, Subsystem AP, per ledger. To use discounts lost, the GLUTSPSI page must be utilizing the "L" or "F" types for the subsystem AP. Note that notification of Discounts Lost will not manifest until running APOHPPPA.

Discount Date Field

Each of the BusinessPlus invoice entry pages has a Discount Date field. This field is used to display the date the invoice must be paid by in order to be eligible for a discount to be taken. This field is present on the APOHININ, APOHBTUB, APIPBTUB, and APTRBTUB pages.

The Person/Entity (PEUPPE) page is used to set up the functionality that enables the Due Date and Discount Date field to be automatically populated based on information from the vendor record. This is set on the Vendor tab, in the Miscellaneous section.

Purchase Request Entry

When a purchase request (POUPPR) is entered for a vendor, no discounts will be automatically applied to the line items in the request. If the vendor offers a volume discount for an item in the order, the discount may be manually entered in the line item record. If the discount is a percentage of the item cost, the percentage may be entered in the Pct. Discount field. If a percentage is entered, it will be multiplied by the extended cost of the line item and used to populate the Discount field. Flat rate discounts may also be manually entered into the Discount field as a dollar value.

Discounts entered on the purchase request will be displayed on the invoice entry page, in the Disc. Terms fields.

Invoice Entry and Processing

When entering invoices for payment, the Early Payment Discount is not visible on the invoice entry page. However, when the proof report is run, the early payment discount for any invoices for vendors with a Discount Flag of S or D will be shown on the report generated.

If the Invoice contains a Volume Discount and the vendor also offers an Early Payment Discount, the proof report will reflect both discounts. The Discount Total represents the PO volume discount.

When the invoice is posted (or distributed), the discount will automatically be deducted from the amounts posted on the O/H Distribution, O/H Postings To GLDB, and Open Hold DB Posting reports.

If the invoice contained both a Volume and Early Payment discount, when the invoice is posted (or distributed), both discounts will automatically be deducted from the amounts posted on the O/H Distribution, O/H Postings To GLDB, and Open Hold DB Posting reports.

Invoice Payment Before Discount Date

When the payment is made, if the payment is being made prior to the Discount Date, the check will be issued in the amount of the invoice less the Early Pay Discount. The Open Hold Pay Selections report also shows the Early Pay Discount information. The O/H Distribution Report and O/H Postings To GLDB report will also reflect the invoice amount less the Early Pay Discount.

If the invoice contains both a Volume Discount and Early Payment Discount, the Open Hold Pay Selections report will show both discounts taken. The O/H Distribution Report and O/H Postings To GLDB report will also reflect the invoice amount less the Volume Discount and Early Pay Discount.

Invoice Payment After Discount Date

If the payment is made after the Discount Date, the check will be issued in the full amount of the invoice. The Open Hold Pay Selections report also shows the Early Pay Discount information, in this case the discount Lost. The O/H Distribution Report and O/H Postings To GLDB report will also reflect the full invoice amount and the Early Pay Discount.

If the invoice to be paid also contains a volume discount, the Open Hold Pay Selections report will show both the Volume Discount and the Early Pay Discount information, in this case the Discount Lost. The O/H Distribution Report and O/H Postings To GLDB report will also reflect the invoice amount with the Volume discount and the Early Pay discount lost.