When the Purchase Remittances window opens, if a Settlement Discount has been entered for an invoice and the qualifying date is earlier than the 'as at' date:
The discount percentage appears in the list in the Set% column.
The discount value appears in the Settlement Discount box at the bottom when the transaction line is selected.
Two discount levels can be entered for each invoice, for example:
2.5% discount if paid within 7 days.
1% discount if paid within 14 days.
Dimensions displays the correct discount level, reducing from 2.5% to 1% when the invoice is over 7 days old, then to 0% when over 14 days old. You can edit the discount figure on any discounted line to any value between zero and the full transaction value. The bottom of the window shows a running balance of total payment and total discount. The following button options are available:
Click Set% to override the default Settlement Discount display.
Click once to clear any Settlement Discount already shown.
Click again to re-display any discount that was cleared.
Click D (Dispute). This will set and unset the Dispute flag ‘*’ of the selected line.
Click once to set the Dispute flag on all displayed invoices.
Click again to clear the Dispute flag on all displayed invoices.
Purchase invoices can be flagged as ‘in dispute’ when they are entered. Disputed Invoices:
Update Supplier Accounts, VAT records, the P&L and Balance Sheet in the normal manner, but they cannot be selected for Payment or Allocation until their Dispute status is removed.
Do not display a Settlement Discount as being available in the Remittance list, and double-click them within the Remittance list will have no effect.
Note that when you are partially allocating (paying) an invoice with multiple VAT Codes, then no settlement discount will be applied. If you enter a partial amount against an invoice with Settlement Discount, then the SD% figure is replaced with **, referring you to the message at the bottom of the window.
This is done because Settlement Discount is applied by generating a credit note for the settlement discount, with the same VAT Codes as in the original invoice(s). If you only partially pay an invoice, we do not know how much discount to apply to each line, thus you would have to manually enter the credit note, and allocate it. Settlement Discount will still be applied to an invoice with multiple VAT codes as long as it is full allocated.