Multi Tiered Payment Terms

[cyberscout]

Hello there,

We tried to setup multi thier payment terms using advanced payment terms as follows:

Payment term code: F99
Payment term: 10 days 3% disc, 30 days 2% disc, 60 days net

We entered the follwing multi-tiered due date rules:

From To Discount Perc.
1 10 .03
11 30 .02
31 60 .00

After entering a new invoice, an error message appears saying that no discount due date and due date has been entered. So it seems that JDE tries to retrieve these dates from the basic payment terms and there these fields are empty.

Does anyone have any ideas? Do we need to activate advanced payment terms somewhere?

Thanks.

 

[JdeInNJ]

You do not need to activate advanced payment terms. Based on the ERP 9 documentation you need to do the following:

On Due Date Rule Revision:

Due Date Rule: MULTI (or whatever you want to call the rule)
Description: 10 days 3% disc, 30 days 2% disc
Based on Date: 1 (invoice date)
Days to Add: 10 (the number of days in the first tier)
Fixed Days: 0
Months to Add: 0
Calendar: Leave blank (based on your post, I don't think you are not using workday calendars)
Work Day Rule: Leave blank

If you do not have a due date rule to calculate 60 days from invoice date, set one up. For Example:

Due Date Rule: N60
Description: Net 60 Days
Based on Date: 1 (invoice date)
Days to Add: 60
Fixed Days: 0
Months to Add: 0
Calendar: Leave blank
Work Day Rule: Leave blank

On Work With Due Date Rule Revisions:

Find and select your due date rule (MULTI)
Choose Multitiered from the ROW toolbar button

On Set Up Multitiered Due Date Rules:

From To Percent
1 10 0.03
11 30 0.02

VIP: The "to" value of the first tier MUST match the value you enter in Days to Add on Due Date Rule Revisions.

On Advanced Payment Term Revision:

Payment Term: F99
Description: 10 days 3% disc, 30 days 2% disc, 60 days net
Discount %: 0.03
Discount Due Date Rule: MULTI
Net Due Date Rule: N60

A couple of points:
- The due date for the first tier comes from the due date rule (not the tier definition)
- The net (no discount) due date is specified in the advanced payment term as the Net Due Date Rule, not as part of the definition of the tiers.
- I am not positive that you must enter 0.03 as the Discount % on Advanced Payment Term Revision.

Please let me know if this works.

Brad

 

[cyberscout]

Hi JdeInNJ,

Thank you for your instructions. I set up the due date rules as explained and then I entered a new invoice on 09/30/09. Looking at the table I see the following values:

Due Date DDJ 10/10/09
Disc. Due Date DDNJ 11/29/09
Disc. Avaliable ADSC 300.00 (gross amount is 10'000)

Now so far I understand the due date fields they are filled out the wrong way. Shouldn't the discount due date being used when the 3% discount still could be taken?

And where does the system store the information for the second thier (30 days / 2%)? Is there another table for that?

Thank you.

Best regards
Felix

 

[JdeInNJ]

I think the fields are being populated correctly. I cannot access an environment to check, but I think field DDJ is the discount due date and field DDNJ is the net (ultimate) due date if the discount is not taken. You can use the data dictionary, UTB, Data Browser or the standard invoice entry prorgam to verify the field names.

The values for the second tier are not stored in F03B11 or any other table. Rather you must run the Update AR Invoices program (R005142) after the due date for the first tier has passed. This program performs the following steps:
-Locates invoices with multi-tiered discounts
-Determines if the discount due date and discount amount fields should be updated by using the as of date in the processing options
-Calculates the discount due date for the next tier and replaces the discount due date from the previous tier
-Calculates the discount amount for the next tier and replaces the discount amount from the previous tier

This program does not:
-Recalculate the net due date: it should never change (from net 60 days in your case)
-Update partially paid invoices

You never see the values for all the tiers on an invoice. Rather, you only see the most up-to-date values.

Please let me know if I remembered the field names correctly and if you need any more information about R005142.

Brad

 

[cyberscout]

Ok, now that makes much more sense to me.

I have run the report for a test invoice where the second tier should be active and it changed the due date and the discount available as you explained.

I also found the same report on the A/P side, there it is R005141. So we just place this report in our overnight scheduler and then the most up-to-date tier will always be active.

Thank you for your help!

Best regards,
Felix

 

[JdeInNJ]

You are welcome. I am glad it is working out for you. Just a warning on the AR side. I think you will have a potential problem if cash is not posted on the day it is received, for example if you use a lockbox. Here is a scenario that I envision, but has never happened to me.

First tier is active until 10 October and discount amount is $100.00

Cash is received 9 October

UBE is run on 11 October and the discount amount is updated to next tier, say $60.00

Cash received on 9 October is posted 12 October. Customer took $100.00 discount.

When cash is applied the discount available is $60.00, but the customer took $100.00 and the invoice is underpaid. If you use automatic receipts, then you would create a short pay, chargeback or deduction based on the processing options for the apply receipts to invoices program.

Is this a possibility in your business? If so, you will have to fill in the processing options for the UBE.

Brad