Cash discounts can also be used when entering invoices directly in the accounting journals.

Setting up cash discounts

Several set up steps are necessary in order to use cash discounts in Uniconta, as described below.

Terms of payment

Use the navigation panel to go to General Ledger/Maintenance/Terms of payment. Cash discounts are set up under ‘Terms of payment’, as shown in the screenshot below.  In this example, two payment terms have been set up with a due date of 14 days and a cash discount for payment prior to a 10 and 5 days respectively.

(Click on screenshots to enlarge.)

Click on ‘Add’ or ‘Edit’ in the ‘Terms of payment’ toolbar/ribbon to add or edit terms of payment. The example below shows the detail form for payment due in 14 days, with a 5% discount if payment is made within 10 days. In this case the user has chosen to enter a short payment name of ‘NT_14_5_10’.

Vendor/Customer groups

Ledger accounts for cash discounts can be created within the Vendor and Customer modules where required.

Use the navigation panel, for example, to go to Vendor/Maintenance/Vendor groups and click on ‘Add vendor group’ or ‘Edit’ to add or edit a vendor group.

The same can be performed in the Customer module to edit any customer group.

Select a cash discount ledger account for each Customer/Vendor group under the ‘Settlement discount’ account selection dropdown menu. In the example below, account ‘40320 – Discounts and Allowances (vendor related)’ is chosen. 

(Click on the screenshots to enlarge).

Vendor cash discounts

Purchase orders

The example below describes how to set up a vendor invoice with a cash discount from the ‘Purchase order’. Use the navigation panel to go to Vendor/Purchase orders and create or select a purchase order by clicking on the ‘Add’ or the ‘Edit’ button in the toolbar/ribbon.

Set up the purchase order with payment terms that have already been created in Vendor/Maintenance/Terms of payment. The example below selects the NT_14_5_10 payment terms (14 days with a 5% discount for payment within 10 days) that was set up in the example above.

(Click on screenshot to enlarge).

Click ‘Save’ in the toolbar/ribbon and then ‘Refresh’ to update the edits. The ‘purchase orders’ screen now shows the purchase order line including the ‘Payment’ terms column. Read more about viewing columns in Unipedia’s Layout section.

(Click on screenshot to enlarge):

Overriding payment terms

There are two additional fields in the ‘Purchase order’ form that effect the invoice, as shown in the screenshot below. These would override the payment terms set up for the vendor.

That is to say that payment terms can be overriden within a ‘Purchase order’ by filling in the two fields in the screenshot above:

‘Cash discount date’ and,

‘Cash Discount (Amount)’.

If these fields are filled in, then the cash discount for this particular purchase order will not be calculated based on the ‘Terms of payment’ that have been previoulsy selected for this particular vendor.  Using the example in the screenshot above, the cash discount will be 100 GBP if payment is made before 10/03/2018.

Open transactions

Use the navigation panel to go to Vendor/Reports/Open transactions to see open transactions.

The screenshot below (English screenshots coming soon) shows an example of a vendor invoice set up with:

• NT14_10_5 payment terms (‘Betaling’),
• a 10% ‘Cash discount’ (Kasserabat) of 93.75,
• on a 937.50 invoice ‘Amount’ (Beløb)
• with a cash discount payment date of 13-01-2018 (Kasserabatdato)
• and a due date of 22-01-2018 (Forfaldsdato)

(English screenshot coming soon).

TIP: If the columns are not visible, right click on any column heading and click on ‘Select Fields’ to drag and drop new headings. Read more about layouts here. 

Payments

Under Vendor/Reports/Payments, there are 3 columns affected by a cash discount, once a payment has been paid, as shown in the screenshot below.

(English screenshot coming soon).

The three columns affected are shown in the screenshot above and are:

Cash discount date: (Kasserabatdato) If a payment is paid by this date the cash discount is triggered.

Cash discount: (Kasserabatbeløbet) Cash discount amount to be used.

Cash discount used: (Udnyttet kasserabat) If the criteria for the cash discount are met (the cash discount date >= the payment date) then the cash discount amount will be entered in this column.

Example: Invoice (Faktura) number 234539

In the first line item in the example above, the criteria to receive a cash discount have been met i.e. the payment was made before the cash discount date.

The ‘Cash discount amount’ (Kasserabatbeløbet) is therefore shown in the ‘Cash discount used’ (Udnyttet kasserabat) column.

The ‘Payment amount’ (Betalingsbeløbet) is the ‘Invoice amount’ (Fakturabeløb) less the ‘Cash discount used’ (Udnyttet kasserabat)

Example: Invoice (Faktura) number 998877

The example in the second line item above, shows that the ‘Payment date’ (betalingsdato) is after the ‘Cash discount date’ (Kasserabatdato). The payment terms for a discount have therefore not been met.

The ‘Cash discount amount’ (Kasserabatbeløbet) of 600,00, therefore, does not appear in the ‘Cash discount used’ (Udnyttet kasserabat) column.

Payment journal entry

The payment journal entry accounts for the invoice payment including the cash discount. In the example below, the cash discount of 93.75 is posted as a credit to account number 4315, ‘Cash discount from vendor’ (Kontantrabat fra leverandører).

Go to Vendor/Reports/Transactions to view the vendor transactions. The example above appears in the ‘Vendor transactions’ (Kreditor posteringer) screen below.  The cash discount is described in the ‘Text’ (tekst) column as ‘Discount’ (Rabat).

(English screenshot coming soon).

Note that if users post a payment directly in a journal they will need to enter the ‘Cash discount used’ manually. This is because Uniconta does not assume that a cash discount was used upon payment, if the amount paid does not come from a bank file or a payment file that is then ‘Transferred to Journal’.

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