An inquiry we received from our clients is how to handle Customer discounts while receiving payments from the Customer in Dynamics 365 Business Central (BC). The following scenario will walk you through the process.

Let’s say, “Sale Invoice” created for a Customer for $450. The payment term is 1 month. The cash discount condition is if the Customer pays before 30 days.

Step 1: Search for “Deposits”

Step 2: Create “New”

Step 3: Assume you got a check for $400, where $50 discount needs to be applied for the respective Invoice of $450.

Select Function >>> Apply Entries

Step 4:

Step 5: Set the “Applies to ID” against the respective Invoice entry and update the Payment Discount Date (Pmt. Discount Date) field to current date, enter discount amount as $50.

Step 6: Select Posting >>> “Test Report” to view the transactions before posting it.

Step 7: Select the “show application” (BC will show the entries for the Invoice where discount is applied)

Step 8: The test report will show, what is the Amount Due ($450), Discount ($50), Amount paid by Customer ($400) and Total applied amount ($450).

Step 9: After Posting the deposits, you can verify the posted transactions in Customer Ledger Entry, where the “Remaining Amount is Zero”

Detailed Customer Ledger Entry will clearly show the Total Payment and payment discount applied.

The status OPEN is unchecked, meaning there is no pending payment, and all the payments are received and cleared.