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Cash Discount vs Project code vs GL account

  • 1.  Cash Discount vs Project code vs GL account

    GOLD CONTRIBUTOR
    Posted Aug 03, 2020 04:41 PM
    Hello,

    We would like to use cash discount, and have discount deduct in the same coding as the invoice.

    But the problem is with Project code.
    If we use Project code in invoice coding, the Project code is not use for cash discount but only the GL account related to the Project code.

    The problem is with CAPEX project. If the CAPEX project is not deduct with the cash discount, that means we will capitalize (and depeciate) the wrong amount.

    Does someone need to deal with that? If yes, what is your strategy?

    Thanks

    Richard

    ------------------------------
    Richard Malouin CPA, CGA
    Senior analyst
    PSP Investments
    ------------------------------
    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 2.  RE: Cash Discount vs Project code vs GL account

    TOP CONTRIBUTOR
    Posted Aug 04, 2020 01:44 AM
    There is no simply answer to your question.

    first of all, from a sheer accounting perspective, and if indeed we are talking about a real "cash discount" and not another type of a discount, I am not sure you are allowed to capitalize discount taken.

    Vendor Cash Discount functionality is linked to the AP module, and operate on AP invoices, regardless of their original (AP module, procurement module, project module)
    There is no simple and direct link between a vendor invoice and the project(s) to which it was recorded.

    Cash discount by definition will not post into the project sub-ledger, and will not use the same posting profiles as the original invoice.

    You can consider recording the cash discount as a negative invoice into the original project (but that means you have to calculate the discount and record the transaction manually) or you can build a customization to try and automate that process of recording that "negative invoice"

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 3.  RE: Cash Discount vs Project code vs GL account

    GOLD CONTRIBUTOR
    Posted Aug 05, 2020 08:38 AM
    Hi Zvika,

    Thank you for your answer.

    Here is what we see in D365FO

    So for the CAPEX, as example, if a supplier give you 2% cash discount for a sale of 100K$ and you use the cash discount, we should pay only 98K$.
    Well you may want to capitalize only 98K$ and not 100K$, right.

    With D365FO, if you decide to select the invoice line to offset, you will have the following information

    (CAPEX project CAP123 is link to GL 1234)

    CAP123: 100K$ (invoice)
    GL 1234: 100K$ (invoice)
    GL 1234: -2K$ (Cash discount)

    So want you will want to capitalize project CAP123, you will have an amount of 100K$, but you pay only 98K$

    What do you think?

    Thanks

    ------------------------------
    Richard Malouin CPA, CGA
    Senior analyst
    PSP Investments
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 4.  RE: Cash Discount vs Project code vs GL account

    TOP CONTRIBUTOR
    Posted Aug 05, 2020 03:50 PM
    where do you see that text about cash discount? (menu path, screenshot)

    It does not look familiar

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 5.  RE: Cash Discount vs Project code vs GL account

    Posted Aug 04, 2020 01:58 AM

    Hi Richard,

    We make the connection with project by using the project code in one of the financial dimensions.

    Hope this helps.

    BR

    Jasper



    ------------------------------
    Jasper Jeensma
    Aertssen
    Stabroek
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 6.  RE: Cash Discount vs Project code vs GL account

    GOLD CONTRIBUTOR
    Posted Aug 05, 2020 08:41 AM
    Hi Jasper,

    Thank you for your answer.

    We will analyze this possibility and see if it will be a good option for our company.

    Thanks

    ------------------------------
    Richard Malouin CPA, CGA
    Senior analyst
    PSP Investments
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


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