Issue/Symptom/Question

How do I apply a cash receipt net of discount?

Applies To

PFW PENTA

Discounts

Windows Used in Article:

Billing & Accounts Receivable>Cash Receipts>Cash Receipts

System Management>System Rules>System Configuration>A/R

Billing & Accounts Receivable>Customers>Customers>Invoicing>Payment Terms

Billing & Accounts Receivable>Customers>Customers>Service Management>Payment Terms

Resolution/Fix/Answer

Example 1 - Record the discount at the time of cash receipt entry as opposed to setting up payment terms at the customer and having the system calculate it

Navigate to the Cash Receipts window and record the deposit net of the discount (ie: $210-10.00=$200=Check Amt)

Record the Check Amount and Check # on the Document tab net of discount (ie: Assumes you did not assign a discount Payment Term to the Customer ahead of generating the invoice in PENTA) 

Apply the ‘gross’ amount to the invoice on the Open Receivables tab

Navigate to the Account tab within the Cash Receipts window to apply the value of the discount to the 'Discount Taken' account (see below). It would probably be the Discounts Taken Account set up in the System Configuration screen (see below) - enter the amount as a negative

Now distribute the cash receipt batch and PENTA should apply the Db to the Discounts Taken account 

Example 2 - Set up Payment Terms at Customer

Navigate to the Customers window and query back a Customer

Navigate to the Invoicing tab and select a Payment Term from the drop down menu - this will be used for calculating discounts on Job invoices

Navigate to the Service Management tab and select a Payment Term from the drop down menu - this will be used for calculating discounts on Work Order or Maintenance Contract service invoices

Navigate to the Cash Receipts window and record the deposit net of a discount (ie: $210.00 - 10.50 = $199.50=Check Amount)

Record the net Check Amount and Discount Amount on the Document tab  

Navigate to the Open Receivables tab and enter 'N' to receive Net of Discount

Now distribute the cash receipt batch and PENTA should apply the Db to Discounts Taken account