Setup a discount account in General Ledger:

If you do not have a GL account created specifically for discounts, you will need to setup an account. Discuss with your controller, accountant, or Sage 300 CRE Consultant about the account that should be used or created for discounts. Refer to How do I set up an account in General Ledger?

Setup Discount settings:

1. In Accounts Payable, from the File menu, select Company Settings, AP Settings.
2. Click Invoice Settings.
3. In the Discount usage section, select Invoice level or Distribution level as appropriate. This determines if the discount amount will be entered at the invoice level as one lump amount or individually on each distribution.
   • IMPORTANT:
     • The discount will not prefill on the invoice when this is set to Distribution level unless the Tax Usage feature is also turned on. See The discount does not prefill during Enter Invoices when the discount level is set to distribution in Accounts Payable
     • If you are using Service Management (SM) or Purchasing (PO) to send invoices to AP that will include discounts, the Discount usage must be set to Invoice level.
4. In the Calculate discount and payment dates based on section, select either Invoice Date or Date Received. The Discount Date on the invoice will be calculated from whichever date is selected plus the Discount Days entered on the vendor terms.
5. Click OK to exit Invoice Settings.
6. Click GL Entry Settings.
7. In the Discount account field, enter the GL account to use for discounts.
   • Notes:
     • If your GL account format includes a prefix, you will enter the base account here. This account will be combined with the prefix on the distribution expense account to create the full account.
     • This account is credited if a discount is taken when the invoice is paid.
     • If you are using the Control account feature and use Control Account Types, use an Other Control Acct or a non-control account for the discount account.
8. Click OK to exit GL Entry Settings.
9. Click OK to exit AP Settings.

Setup Vendor default discount terms:

Note: These default settings will calculate the Discount date and Discount amount to prefill on the invoice during invoice entry but they can be changed.

1. AP Setup, Vendors.
2. Select the vendor.
3. Select the Terms and Defaults tab.
4. Enter the Discount percent. If the discount is 2.5%, enter as 2.500.
5. Enter the Discount days. This number of days is added to the Invoice date or Date Received (depending on the option selected in AP Settings, Invoice Settings) to calculate the Discount Date which is the date the invoice must be paid by to receive the discount.
6. Click Save.
7. Repeat steps 2 through 6 for any additional vendors.
8. Click Close when finished.

Entering Discounts on the invoices:

When you enter a new invoice, if you have Discount defaults entered on the vendor setup, the Discount Date and Discount amount will prefill according to your settings. You can change the date and amount that prefill if needed.

If you need to enter or change the Discount Date or Discount amount on an existing unpaid invoice, use Change Invoices.

The discount will apply when the invoice is paid if the Check date/Payment date is on or before the Discount Date. If the Discount Date on the invoice is blank but you have a Discount amount entered, when the invoice is paid, the discount will be taken regardless of the Check date/Payment date.

For more information on taking discounts, refer to How do I take a discount when I print checks?