Payment terms Payables - Can a discount period be longer than the Due Date

Question

My client regularly pays their supplier invoices beyond the due date but yet deducts the early payment discounts
anyway
I have tried unsuccessfully to create payment terms that would have the correct due date ex Net 30
But would nevertheless calculate the discount they wish to take even beyond that due date
For example try to set up a payment term 2% 60 Net 30
But the discount is always canceled beyond the due date even if I set the discount period to go beyond the due date
Now it is true they could still manually take it but the system would no longer calculate it for them
The only way I think I can make this work is to make the due date period equal to the discount period
So 2%60  Net 60
Am I missing something here
The client used to be able to do this automatically in his old Accpac dos system (take the discount anyway)
Any comments would be appreciated
Thank you
Georges Ostiguy

Answer 1

Hi Georges,
the application considers the due date as the pertinent date & uses this date to calculate discounts, ageing reports etc.So this date cannot be used as 'merely advisory'. This is also the reason why this date is always the last date where the application allows an automatic discount calculation to.
It is possible to manually change the due date of AP invoices & then adjust the 'Cash Discount Date Offset' field in the accounting tab of the document. This then allows an automatic re-calculation of the discount according to the payment terms & the updated due date.
Since your customer uses the due date on the AP invoice received as an FYI only, you could let them enter this date in the BP Reference field on the document in addition to the actual vendor refenece number & then make that column visible in Step 6 of 9 in the payment wizard. Then maintain the actual due date as decided by your customer in the document & adjust the cash discount offset date.
All the best,
Kerstin