Payment discounts at the time invoice is paid.

Navision will post the payment discount automatically if the payment is made within the specified date range. You can define how Navision should calculate the payment discount at the Payment Term windows. To access the Payment Term window, click FINANCIAL MANAGEMENT --> RECEIVABLES --> SETUP --> PAYMENT TERMS.

When you post invoice, Navision will calculate the possible payment discount amount and stored in the Original Pmt. Disc. Possible field and the Remaining Pmt. Disc. Possible field. The possible payment discount is calculated based on the setting in the Payment Term. When invoice is post, the payment discount amount is only a suggested or possible value. The payment discount will only be given when the invoice is fully paid within the date specified. Therefore, payment discounts can only known at the time of full payment. Partial payment is not entitiled for payment discount. Payment discount will be given only if the full payment has been made before the date in the Pmt. Discount Date in the Customer Ledger Entry / Invoice.

My company do not practice early payment discount.

Payment discounts excluding VAT

The payment discount is calculated based on:
1) Amount field in Sales and Purchase documents
2) Sales/Purch. (LCY) field in General Journals

The payment discounts will be posted to
1) Payment Disc. Debit Acc. - post granted sales payment discount
2) Payment Disc. Credit Acc. - post reductions in sales payment discount amount

The payment disc. debit/credit acc. can be set at the Customer Posting Group and Vendor Posting Group.

Payment Discounts

Payment discounts can be given in 2 different scenarios.
1) At the Sales Order or Invoice level
2) When payment is made. Discount is given to encourage fast payment.

Navision can handle both the above mentioned senarios.


Besides the above mentioned scenarios, payment discount can be calculated based on the price before or after tax (VAT). Depends on your organization's needs, Navision allow you to set whether you want to calculate payment discount based on the price including or excluding VAT. This can be set at the General Ledger Setup window.