Client Issue Overview
Our client recently upgraded to Microsoft Dynamics GP 2015 R2 from GP 10. Before going LIVE, our standard procedure is to test the functionality of GP in their test environment. During this testing phase of the implementation, our client disclosed that they have not been able to successfully use payment terms restrictions since GP 2010. Their AP person had to be extremely careful when paying invoices, a function that should be automated.
This was how we helped!
Here is the document and discount date break down:
7/30/2015= Doc Date Found in payables batch window
7/30/2015= Apply Date
7/30/2015= For both Due and discount date cutoffs.
2/10 Net 30= Payment Terms
|DOC||DUE DATE||DISC DATE||AMOUNT|
The Select Payables Cheques window allows users to create restrictions that will tell Microsoft Dynamics GP to select invoices for a Cheque Run based on those restrictions. Selecting the Vendor in our example, we set the restrictions for GP to include all invoices that had either a due date “and/ or” discount date before July 30 2015. Notice that our apply date is also set for July 30th.
The Build Batch button now populates all the invoices and should calculate the applicable discount. In our example, GP should pull Document 1-1 and Document 3-1 as their document due date and discount date, respectively, was prior to July 30th.
However notice that Document 3-1, even though pulled, no discount was taken. This has been the experience of our clients.
The problem is the Apply Date that was initially set when we built the batch. The Apply date essentially tells Microsoft Dynamics GP to compare the invoices pulled and calculate discounts as of the Apply date. In our example the Apply Date is July 30th. Therefore Document 3-1, even though the cutoff date was July 30th and the discount date was July 26th, the Apply date is after the discount cutoff date and that is the date that GP is calculating the discount. The result, No Discount Taken.
Adjust the Apply Date to 10 days prior to your discount cutoff date. This allows for a 10 day “Grace Period” where GP can then pull the invoices correctly and apply any discounts that are available between the apply date and the discount cutoff date. The result is a Batch that has 2 invoices to be paid and one with the discount taken correctly.
Document 3-1 is now pulled in the batch and the correct discount of $8 was taken on the invoice. The invoices are now ready to be paid.
Tip: It would also be a good idea to build a Smart List when doing vendor payments, that will generate a report of vendors with applicable discounts available greater than 0. This is a good check and balance so as not to miss any saving opportunities.
Exclude Expired Discounts from Payments
This is a set up feature in the Payables management Set up Window. With the exclude expired option marked, the system will compare the apply date on the select checks process with the discount date of the invoices to determine if it would be excluded. It would initially take any doc that had a due date and\or a discount date before the cutoff date and then look at the apply date. If the discounts are expired, then Microsoft Dynamics GP will exclude the invoices.
So with that, Doc 1-1 and Doc 3-1 would once again temporarily be selected because of the cutoff dates. However, in the scenario with the Apply date set to July 30th, they would both have expired discounts by the apply date and therefore both be excluded from the Batch.
By changing the Apply Date to July 20th, only Doc 3-1 would be pulled, as it has a discount cutoff date at July 26th which would be after the Apply date. Doc 1-1 would not be pulled, as its discount would be expired as of June 25th and thus it would be excluded.
Junior Consultant with BDO Solutions
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