When the customer has a payment term, where:
Discount days are 10D and
Due date also is 10D and
Discount Grace Period is set to 5D.
The discount is not accepted if payment is after the due date but within the Grace period.
If Due date is changed - discount will be accepted.
I think Grace period should take priority and an improvement would be that discount was accepted in the grace period.
Comments
The General Ledger Setup for Payment Discount Grace Period states:
"Specifies the number of days that a payment or refund can pass the payment discount due date and still receive payment discount."
This does not work as described. As stated by others, the discount is not accepted if payment is after the due date but within the Grace period.
Category: Financial Management