Applying a Supplier Payment Discount Feature on Over and Under payments through Supplier Payments Module.
- In the navigation panel, click Debtors and Creditors>Supplier Transactions
Click New. The Supplier Payment window displays as below.
- Enter the header details for the payment
- Enter the date of the payment.
- Enter the full value of the payment made
- Select the Supplier from the drop-down filter and draw it to the screen
- Enter a description to best describe the payment.
- Select the correct tender method. This is very important as the tender selected affects the bank reconciliations.
Enter a payment reference. This is used when Importing the bank reconciliation. Usually, your account code with the supplier or a cheque number if paying by cheque
Test data of two supplier payments one for $10 and one for $40
- When you have finished entering the payment details you can do one of two things either:
- Click Finalise button to finalise the payment only
Click Finalise and Allocate to finalise the payment and allocate it against an invoice and use the discount feature
If you select Finalise and Allocate, a Supplier Payment Allocation Window will open (test data screen shot below)
- Highlight each open item that makes up the payment and click on 'allocate selected'.
A balance will remain in the 'Value' field at the top of the allocation window depending upon if it is an overpayment or underpayment.
Overpayment:
If the balance in the 'value' field is a negative value, in the line details of the allocation for the Suppay transactiontype line, enter a Negative value into the discount field. This means that you are overpaying by a few cents and you wish to write it off at the time you enter the payment and allocate it
The balance in the value field should now be 0.00
Click on Finalise
Once this overpayment has been entered and allocated with a discount value and finalised, the system will automatically create a SUPDEB on the card (Supplier debit) to stand for the discount value and it will be dissected against the general ledger account of 'Supplier Discount Received eg 62070'.
Result on the supplier card open item
Underpayment:
Follow the steps above to insert the supplier payment (full value of the payment overpaid)
When you click on Finalise and Allocate on the allocation window, select the open items that make up the supplier payment
You will be left with a balance in the value field because you overpaid. Example of test data screen shots below
If the balance in the 'value' field is a positive value, on the line details of the allocation for the Suppay enter a Positive value in the discount field. This means that you have underpaid by a few cents and you wish to write it off at the time you enter the payment and allocate itSupplier payment $70 rounded down and Underpaid by 0.36c
Allocation and inserting the discount of the underpayment of $0.36 in the discount field on the supplier payment transactiontype
Nett result of the allocation is now $0
The value now should be 0.00 on the allocation window
Click on Finalise
Once this underpayment has been entered and allocated with a discount value and finalised, the system will automatically create a SUPCRE on the card (supplier credit) to stand for the discount value and it will be dissected against the general ledger account of 'Supplier Discount Received eg 62070'.
Remittance will print the value of the payment along with the open items that were allocated against the payment. If there is a transactions created to stand for the discount, that will print also.
