Discounts on AP vouchers


Reputable Poster
We are on E1 9.0, tools 8.98.42.

We are trying to test some pretty basic, I thought, functionality of applying discounts to payables vouchers based on the payments terms.

I set up a supplier to use a payment terms 001 - 1/10 net 30. So we shoud get a discount of 1 percent if paid within 10 days of the invoice date, but in any case the amount is due in 30 days. Setting this up and testing, I seem to be getting a discount on every voucher regardless of the due date.

Issue #1 - I entered 4 vouchers for this supplier with invoice dates of 4/1, 3/31, 3/30, and 3/9. This resulted due dates (RPDDJ) of 4/11, 4/10, 4/9, and 3/19. In the F0411 you can also see the RPDDNJ (discount due date) of 5/1, 4/30, 4/29, and 4/8. Now this seems a bit backwards to me, the values in the RPDDJ would be the ones I would expect to see in the Discount due date field RPDDNJ. Reading the documentation its a bit confusing but it does seem to imply that the discount due date if you are usin discounts would be stored in RPDDJ. So maybe that is not an issue.

Issue #2 - this is the real issue. With discount due dates of 4/11, 4/10, 4/9, and 3/19, I would expect that if pay these al today, 4/10, I would get the discount applied to the first two vouchers, but not the second two. But I get the discount on all 4 vendors.

Looking further there is a processing option on Create Payment Groups to specify Discount Cutoff Date, and if you key in a specific date, such as 4/10, it does only calcuate the discount on the first two vouchers.

However, this would seem to be an odd requirement. It seems to force you key in a date in the processing options to have the discount pay by date used. If you leave the P.O blank, you get the discount on everything. So the user would basically have to key this in or change it every time they create a payment group. Basicaly changing the date to today's date whenver they run it.

Is this they way this is supposed to work or am I missing something.

Thanks for any input or ideas here.
In my experience, that's the way it works - you use the processing option on Create Payment Groups to control whether you take the discounts or not.

It seems that the intent was flexibility, so that you could take a discount beyond the allowable period IF there were extenuating circumstances, such as a dispute or something. Or if your company is just one of those that takes all discounts, whether they paid within terms or not (I only say this because I used to be in A/R, and people really do that!).
I just went rounds with Oracle on this same topic. I had always assumed things would be "smart" on Create Payment Groups with regards to Discount Due Date and not give you the discount if the payment date is PAST that date. If you use the processing options, do improve but it's too bad it has to work this way.

There is another issue (not sure if it is in 9.0 but is an issue in 9.1) where the Due Date and Discount Due Date fields are actually SWITCHED. The wrong dates go in the fields (opposite) but all of AP recognizes this and does the processing properly.

I'm attaching some notes from Oracle Knowledge.


  • 187866-Discounts in AP.doc
    87.5 KB · Views: 118