Below is the process on how Dimensions deals with Settlement Discounts.
When the Purchase Remittances window is displayed, if a Settlement Discount has been entered for an invoice, and the qualifying date is earlier than the 'as at' date entered on the previous window, then:
The Discount percentage will be displayed in the list, in the column headed by Set%.
The value of the Discount will be displayed at the bottom of the list, in the Settlement Discount box, when the transaction line is highlighted.
The system allows two discount levels to be entered for each invoice, for example:
2.5% discount if paid within 7 days.
just 1% discount if paid within 14 days.
The system will display the correct level of discount in the remittance list, reducing from 2.5% to 1% when the invoice is more than seven days old and then reducing to zero % when the invoice is more than 14 days old.
If a discounted line is selected the discount figure shown can be edited to any value between zero and the full value of the transaction.
The bottom of the window displays a running balance of total payment and total discount for the remittance. There are various options available when using either the Set% or D (Dispute) buttons:
Click Set% to override the default display of Settlement Discount.
Click the button once will clear any Settlement Discount already displayed.
Click a second time will re-display any Discount it has previously cleared.
Click D (Dispute). This will set and unset the Dispute flag ‘*’ of the selected line.
Click the button once will enter the Dispute flag for all invoices displayed.
Click the button a second time will clear the Dispute flag for all invoices displayed.
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.