Price Discount in MIRO

[Former Member]

As a part of policy, A price discount is sought from Vendors who default in supplying materials within the stipulated time frame. This discount is not considered at the time of making the Purchase Order.

Requirement:

At the time of MIRO (invoice) how can this price adjustment be effected. It is to be noted that this discount should reduce the value of Materials an accordingly the value payable to the Vendor.

Points to be noted:

1) The same should not be routed through subsequent debits, but effect to be given at the time of MIRO (Invoice itself)

2) As tax codes exist, by virtue of this discount, tax amount should not altered.

For example Basic Amount $100 Tax $10 Discount $2, Hence the desired result is Material value to be reduced by $2 (Hence Net Material Value would become $108), Tax amount to remain $10, Amount Payable to Vendor $108.

Please help

[Former Member]

Hey hi ,

Can you try to use unplanned delivery cost tab with negative amount that is the amount of default with negative sign .It will reduce your invoice.Kindly try to use this option if it cant be use then please explain why ?

Regards ,

Shikha Singh Chauhan

[former_member197616]

Hi, Cash discounts will only be handled through the PO and not at the MIRO stage . You can use the discounts condition types like RAOO in the PO conditions .so that the PO value get reduced . There is no provision for the cash discounts ,However you can use the payment terms which are based upon the payment of cash . Regards,

[Former Member]

Hi,

You can do this while carrying the payment using the discount field there, can you check the feasibility.

Other way is while posting the invoice, in third tab 'Material' you can pass the entry with the required value, so that here you can select the tax as zero percentage and this will reduce the value on material also.

Regds,

Chana

[Former Member]

Thank you for your response.

You have provided 2 options.

Option 1: Discount field. Are you indicating at Cash Discount in MIRO or discount at the time of payment i.e. after MIRO? Requesting you to please elaborate the same and what exactly needs to be done.

Option 2: Authorization to use the Material tab is restricted by the admin and hence I am unable to use this option.

[former_member842102]

I think so your scenario can be handled by Invoice Reduction function. Cash discount function does not fit in here since Cash discount is directly connected to the payment terms whereas in your case you decide the discount amount based on the delivery dates.

A invoice reduction can result in a Invoice with a total amount and a additional credit memo for the discount amount. In totality, the net outgoing amount will be the difference between the invoice nad credit memo.

Kindly explore this further.