The system takes cash discounts into account when matching entries during voucher updating.
The remaining amount in the invoice is reduced by the cash discount when this is all that remains. This means by the difference between the ordinary amount and the cash discount, when the cashduedate is filled in, and Paid last in the invoice and the Due date (VoucherDate) for payment when both are less than or equal to the Cash due date.
The ordinary amount in the current Currency and standard Currency for the entry now being posted (whether the invoice or payment is posted first) is corrected to allow for the cash discount. This means that the payment transaction is increased (if relevant that the invoice transaction is reduced, if payment has been posted first). When the payment transaction has been corrected, the amount paid is entered in the fields for cash amounts.
The system performs the same proportional correction to the amount in current Currency as in default Currency. Cash discounts are accumulated as automatically generated transactions. If the Cash due date is changed so that the remaining amount is less than or equal to the cash discount, the entry will once more be dormant.
The VAT code for the discount account determines whether there is any reversal of VAT. When you define and refer to Payment terms, you must therefore take into account both calculation of discount and posting to accounts. If no VAT code is defined for the discount account, no VAT will be reversed. If the cash discount is treated as a purely financial entry, there is no need to reverse VAT.
The system uses the Payment terms in the Invoice entry to find the account number, and selects the account number for cash discounts received for incoming Invoices, and cash discounts granted for outgoing Invoices. If no account number is defined, the posting errors account is used.
Manual matching via processings or buttons in the tables with open customer and supplier entries is always based on the original amount and the ordinary Due date.