Understanding Amounts and Dates for Invoices and Vouchers with Multitiered Discounts

You run the Update A/R Invoices (R005142) and Update A/P Vouchers (R005141) programs to update the discount amount and discount due date on your invoices and vouchers according to the tiers that you set up for the multitiered payment term that you assign to them.

When you run either of these programs, the system:

• Locates the appropriate transactions by comparing the payment terms that have been set up in the Multitiered Payment Terms table (F00147) with the payment terms that have been entered on the invoice or voucher.

• Uses the as of date entered in the processing options to determine which records to update.

  The system compares the as of date that you enter with the based-on date specified by the payment term to determine the number of days that have passed. The system locates the proper payment term to determine the tier that corresponds to that number of days. If the discount percent is different on the tier than it is on the transaction, the record is eligible for update.

• Updates the discount amount by multiplying the discount percentage of the new tier by the gross amount of the transaction.

• Updates the discount due date by adding the value in the Day Range To field of the tier to the based-on date of the transaction.

  For example:

• To day = 20

• Based-on date = GL date

• GL date = June 17

  The system adds 20 to the GL date and assigns a discount due date of July 7.

  Note: The system considers the work day calendar and work day rule that you assign to the due date rule when it calculates discount due dates.

The system does not:

• Recalculate the net due date.

  The system calculates the net due date at the time the transaction is entered, and it does not change.

• Update partially paid transactions.

  The gross amount must equal the open amount.

• Consider records that do not have a discount amount.