Posted Thu, 10 Sep 2020 15:37:23 GMT by Ron Fader Legacy Ventures, Hotels VP of Finance
A high-use vendor of ours (Guest Supply) just implemented a 2.5% price-increase due to Covid and the supposed need for additional resources to process check payments but will offer an electronic payment discount/credit of 2.5% right back if we pay online via their payment portal (vs. paying by check).

Our normal AP process is to enter the original invoice(s) into AP (which span several ledger accounts), have it posted/approved for payment and then send a check. In this new world, the last step would involve making the payment online at which time the applicable credit amount would be known. It'll also be known in total for the payment being made and not by ledger account or invoice.

How are others handling credits or payment discounts like these within M3 and/or within your AP entry process so as to not create issues with completing/balancing cash mgmt reconciliations?

Thanks,
Ron
Posted Wed, 16 Sep 2020 17:58:24 GMT by David Earl The Hotel Colorado Controller
I was wondering the same thing.  What I have done is in the A/P module I created a credit memo/invoice for Guest Supply with the amount of the discount from the Online Payment Receipt and instead of posting to an expense code, I entered our GL account for "Cash Discounts" then posted the credit memo.  After that I went into Check Writer and posted the ACH payment applying the payment to the full amount of the invoices paid along with the credit memo with the discount.  Bank account is in balance, invoices show paid and the cash discount is showing on the income statement miscellaneous income page.
Posted Wed, 16 Sep 2020 18:02:36 GMT by Ron Fader Legacy Ventures, Hotels VP of Finance
That is a good suggestion. We do not use a cash discounts ledger account however so we would have to migrate in that direction if we were to adopt the suggestion. Thank you for your input
 

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