Enter Invoice and Run the Update A/R Invoices Program

Enter an invoice with an invoice date of June 1 using the payment term code based on the previous setup. The system calculates the discount as 10 percent of the gross amount and assigns a discount due date of June 11 (June 1 + 10 days = June 11).

If you run the update program nightly, the system will not update this record until June 12.

On June 12, the system:

• Calculates the difference between the invoice date and the as of date as 11 days.

  Eleven days is defined in the second tier, which has a 5 percent discount.

• Recalculates the discount amount to 5 percent of the gross amount.

• Recalculates the discount due date to June 21.

  The system uses the value in the To field of the second tier, which is 20, and adds it to the invoice date to derive the new discount due date.

If you run the program nightly, the system will not update this record again until June 22.

On June 22, the system:

• Calculates the difference between the invoice date and the as of date as 21 days.

  Twenty one days is defined in the third tier, which has a 1 percent discount.

• Recalculates the discount amount to 1 percent of the gross amount

• Recalculates the discount due date to June 30.

  The system uses the value in the To field of the third tier, which is 29, and adds it to the invoice date to derive the new discount due date.

Because no other tiers are set up, the system will not update this record again.