Settlement Discount

Invoicing and Sales Analysis can optionally handle settlement discounts for early payment of invoices.

The settlement discount terms for an individual account are derived from the 'Settlement discount' category on the customer's record. For every set of settlement discount terms, a single-character code must be devised. This code must be entered in the Settlement Discount field on the record of every customer or supplier to whom these terms apply.

If settlement discount is taken into account when calculating VAT on Sales Order transactions (i.e. where the system key OPVATCALC is set to NO), the system will always use the highest settlement discount band on the category for the calculation.

When a sales invoice is paid, you can either permit the strictest terms only or you can decide to allow all customers a grace period where they may still take settlement discount even if the terms have expired. The system key SLSETTLAT holds the number of latitude days allowed after the settlement terms have expired. This results in the customer having more time to pay an invoice before losing any settlement discount. The number of latitude days will be taken into account when the system calculates any settlement discount that can be taken.

Clawback VAT

The facility to use VAT claw-back is available in the system and is required in German systems. The system key OPCLAWVAT must be set to YES to implement claw-back for sales and system key POCLAWVAT must be set to YES to implement it for purchases.