Cash Receipt Discount Hitting Wrong GL


(Vic Dŕėċċhíò) #1

Hey 8.03’ers! Anyone else out there?

I asked this question 3 years ago; we must have never resolved it and other things took priority lol:

We have a handful of customers that when we perform a Cash Receipt on an Invoice and if they have a discount, the discount gets applied to the wrong GL account (Purchase Discounts vs Discount & Allowances).

Doesn’t make sense. I see no way to over-ride or control a discount GL account at the Customer level. Any ideas?

Here’s the text of my original question. TIA for any suggestions.

Finance came to me today with a strange issue. They did a Cash Receipt; an A/R Receipt on an Invoice. They applied the amount received, which wasn’t the full amount of the invoice, and the rest was to be a discount. We do this all the time… They press “Apply with Discount” and then they reviewed the Cash Receipts Edit List and that remaining amount instead of being applied to the “Discount & Allowance” GL account specified in the Company Config Finance Module setup for “Payment Discount”, it was applied to the “Purchase Discount” GL account. In fact, on this Receipt Group we had 5 similar cash receipts with discounts to be applied. The other customers’ discounts hit the correct GL account… only this customer was the anomaly.


(Joe J) #2

Discount SALES can BE SET-UP PER
a SPECIFIC AR ACCOUNT - GL Control
or
on a PRODUCT GROUP - GL Control

Q1 - What account is being ‘hit’ and what Product is on the Sales Order
Q2 - What is specified on the PG GL Control(s)
Q3 - What is specified on the AR GL Controls

Q4 - Somewhere… the combination of what account is getting hit with the discount and the set-up, should point you to the answer. Trace out the specific sales order or use Part-transaction history tracker against the financials for the Sales Order/Invoice


(Vic Dŕėċċhíò) #3

Joe, thanks for your reply. You gave me a bit of hope last night because I thought perhaps that I had overlooked the Product Group GL control all along.

On the Cash Receipts edit list, we have many Customers with discounts that go into the proper GL “bucket” of Discount & Allowances. But this one Customer, when we do a Cash Receipt and “Apply with Discounts”, the discounted amount falls into a “Purchase Discount” GL bucket. (see below).

I checked the Product Group of the Part being invoiced and it is setup correctly with the correct GL account of 42000 for Disc & Allow.

I also checked the AR account as you suggested. We only have one. (screenshot below). I see the correct GL account listed for “Sales Discount” and also see the “Payment Discount” GL account that this one customer’s sales discount is falling into the payment discount bucket.

Thanks again for your suggestions and help. I’ll keep searching!

image

image


(Jonathan Lang) #4

Obviously this is a tough problem since we can’t look with you, :slight_smile:

I would start going through a process of elimination.

To eliminate the Part and Product group:
Open Part Adviser and track the part in question to the Sold It? tab. Look at all the customers who’ve bought that part and see if any of them have had ‘Purchase Discounts’.
The fail point of this method would be if the current customer is the only buyer of the part.

Joe was right on the money to use Part Transaction History to trace out the financials.

Next I would hit the Sales Orders and the discounts used for that customer compared to the other customers. Check customer setup and see what discounts are applied to the customer. Somewhere in this haystack of needles lies the needle you’re looking for.


(Calvin Krusen) #5

I hope you checked the Prod Group (PG) of the Invoice Line and not the actual Part master. The PG in the Part table, is just the “default” for Order Entry. If the PG is changed on the SO line, the changed one is what is used for invoicing. It can also be changed during invoice entry.

You said everything works as expected for other customers. Is that for the same part?
The line above the one you drew a box around (42000 in the Edit list) is the one you expect to be hit? Were any of the discounts that hit that 42000 from the same customer as the ones that hit 90020?


(Vic Dŕėċċhíò) #6

Thanks for the suggestions… I’ll keep on plodding away at it. :slight_smile:


(Vic Dŕėċċhíò) #7

Calvin, thanks. Unfortunately, the PG of the Part (Part Master), SO and Invoice are all equal. Thanks for your suggestion!

It’s definitely NOT part specific as we’ve sold this part with discounts before and it went into the correct bucket with other customers.

I’m going to do some additional poking around in SQL… Thanks again.