How To Guide

AP Discounts
Overview ......................................................................................................................................... 2
Setup ............................................................................................................................................... 2
Early Discount / Late Charge - Setup ......................................................................................... 2
Forced Discounts ........................................................................................................................ 4
Functional ....................................................................................................................................... 5
Payment Proposals ...................................................................................................................... 5
Example Scenarios ...................................................................................................................... 5
Check Writing ............................................................................................................................. 7
Cash Requirements ..................................................................................................................... 7

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 AP Discounts

Overview
The standard payment proposal functionality of X3 has been modified to more closely accommodate the
needs of North American customers. Please review the information below to setup AP discounting in X3.

Setup
Typically the discount is based on the invoice date. If however you would like the discounts based on the
accounting date or due date of the invoice, that option is available and is determined by the XBAPDAT
(Date for the calc of discounts) parameter. Using the ADMIN menu, go to Parameters > General
Parameters > Parameter Values.

The following window shows the options that are available for the XBAPDAT parameter.

Item due date discount period to be calculated based on the invoices due date.
Accounting Date discount period to be calculated based on the invoices accounting date.
Invoice date discount period to be calculated based on the invoices supplier date.
NOTE: Examples contained in this document will assume a XBAPDAT value of Invoice Date.

Early Discount / Late Charge - Setup

Discount / Charge codes are used to determine the discount or charge associated with a number of days.
The number of days are relative to the Invoice date or Invoice due date depending on the value of the
XBAPDAT parameter. The following is an example of a typical Discount / Charge code. Using the ADMIN
menu this function can be accessed at Common Data > BP Tables > Early Discount / Late Charge
(GESTDA).

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 AP Discounts

The above example code called 210 will calculate a 2% discount if payment is made 10 days from the
date of the suppliers invoice date.

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 AP Discounts

Forced Discounts
Supplier invoices may be flagged as forced discount by indicating so on the invoice. When an invoice is
flagged as forced discount the discount will always be calculated regardless of the payment date.
A/P Invoices

Purchasing Invoices

This field is also available on the Open Items button once the invoice is created.

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 AP Discounts

Functional
Payment Proposals
The Payment proposal function has been modified to include invoices that are either due or discountable
in the payment proposal period. The following examples demonstrate the functionality.
Selection Control Fields
Items From & To: The due date on the invoice must fall between the Items From and To fields in
order to be selected.
OR
Discounts up to: Invoices with a discount period (invoice date + days in discount/charges) <= to the
Discounts up to date will be selected even if the invoice's Due Date is outside the Items From date
range.
Discount Control Fields
Discounts up to: When the Discounts up to (entered on payment proposals) is <= to an invoice's
discount period (supplier invoice date + days in discount/charges), the discount will be applied.
Forced Discount: If an invoice is flagged as "Forced Discount", as long as the invoice due date is <=
to the To date, the discount will be applied regardless of the Discounts up to parameter.

Examples:
Example 1 Discount of 1% 10 days no forced discount
Supplier Invoice date: 3/24/10
Due Date: 4/23/10
Discount period is valid to 4/3/10 (3/24/10 + 10 days)

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Payment Proposals selections:

Items From: 1/1/10 To: 4/2/10
Discounts up to: 4/2/10
Result: The invoice is selected and includes a discount because the discount period for the invoice meets
the Discount up to criteria.
Example 2 Discount of 1% 10 days no forced discount
Supplier Invoice date: 3/24/10
Due Date: 4/23/10
Discount period is valid to 4/3/10 (3/24/10 + 10 days)
Payment Proposals selections:
Items From: 1/1/10 To: 4/9/10
Discounts up to: 4/9/10
Result: The invoice is selected because it meets the due date criteria but will not include a discount
because the invoice is not within the discount up to parameter.
Example 3 Discount of 1% 10 days forced discount
Supplier Invoice Date: 3/24/10
Due Date: 4/23/10
Discount period is valid to 4/3/10 (3/24/10 + 10 days)
Payment Proposals selections:
Items From: 1/1/10 To: 4/30/10
Discounts up to: 4/9/10
Result: The invoice is selected because the due date is within the Items From/To Range but also
includes a discount because its flag as a forced discount invoice
Example 4 Discount of 1% 10 days forced discount
Supplier Invoice Date: 3/24/10
Due Date: 4/23/10
Discount period is valid to 4/3/10 (3/24/10 + 10 days)
Payment Proposals selections:
Items From: 1/1/10 To: 4/9/10
Discounts up to: 4/9/10
Result: The invoice is not selected because the due date is not within the Items From/To Range.

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Check Writing
The check stub report (XBCHKSTUB) shows the discount amounts taken on each invoice.

Cash Requirements
The Cash Requirements report (XBCASHREQ) includes the calculations for discounts based on the
same logic as in payment proposals. The report displays the invoice amount, discountable amount,
discount amount, and net amount.

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