Discounts, Abatements, and Adjustments Impact Collection Documents

This section discusses how discounts, abatements and adjustments impact the collection documents.

The creation of an applied credit memo triggers an automatic update of the corresponding collection document for abatements and write off.

The creation of an adjustment for an invoice triggers an automatic update to the collection documents for negative adjustments and write offs.

Discount instructions for both the Bank Remittance Batch file and Bank Updates Remittance Batch file such as limit payment date for granting discount and calculated discount value are generated based on the updates to payment terms. This can be either before the generation of the collection document, which leads to discount instructions in the Remittance batch file, or after the generation and submission of the remittance batch file, which leads to discount instructions in the Bank Updates Remittance batch file.

When the bank return file is imported, the payment related fields such as paid amount, discount amount, calculated interest, and other fields, are compared to the values in the collection document and tolerances defined. The differences can be either written off or adjusted.

Abatement adjustments are created only for the difference between abatement concessions versus received abatement which are within the tolerance limits, otherwise the amounts are kept open in payment schedules for future collections and negotiations.

Discounts are applied along with the receipt when they match with the configured discount. If there is no match, a receipt is generated for the paid amount only, and the payment schedule remains open.