Cash discount on partial payment clearing

[Former Member]

Dear Gurus,

Greetings for the day......

I have one scenario where business receives collection from customer and apply that to the open invoices. If the invoice get cleared then cash discount is being calculated on the same, but cash discount is no getting calculated on the partial amount. Business wouldn't like to post CD entry manually.

Any one could help on the same.

Best Regards,

Deb

[sanilbhandari]

Hi

The way payment term is inherited on partial or residual items from customer clearing is based on the configuration for tolerance group assigned to customer master. If in the tolerance group, you have specified a default payment term, which does not have any discount calculation, than discount will not be proposed on the residual item. So check the configuration of tolerance group assigned in customer master. If you need that discount should be based on residual item as well in the same way as invoice, you can control that through tolerance group assigned in customer master

Regards

Sanil Bhandari