Taxes
Use custom discounts for Canadian Sales Tax
Customers using the standard tax solution for Canada can now use custom discounts in their taxable Accounts Receivable transactions.
Details
Custom discounts let you enter a discount for invoices where no term discount was selected or override a term discount when it's no longer applicable. Previously, we blocked custom discounts for companies using a Taxes application tax solution. Now, if you use the Canadian Sales Tax solution, you can use custom discounts in Accounts Receivable transactions for terms that calculate by line-item excluding taxes. This gives you the flexibility to manage complex term discount situations.
How it works
Step 1. Enable custom discount
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Go to Accounts Receivable > Setup > Configuration.
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In Enable functionality, select Enable custom discount.
To turn off the setting, deselect the checkbox.
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Select Save.
Step 2. Define terms
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Go to Accounts Receivable > Setup > More > Terms.
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Select Add, or select Edit for an existing term.
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Enter the discount and term information for the term.
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In the Discount section for Calculate based on, select Line-items total, excluding taxes.
You cannot change the calculation method for a term that's in use or that has been used in a transaction.
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Select Save.
To see the applied discount, run a General Ledger report or subledger report. You can also view it by selecting the payment link in the header of the paid invoice.
Limitations
When you create an AR sales invoice with a term discount, you can only use a custom discount to override a term that calculates based on the line-item total, excluding taxes.
If you apply a custom discount to a partial payment, then you cannot use a term discount in that transaction.
If you make a partial payment and then pay off the AR sales invoice using a term discount, you cannot apply a custom discount.
Permissions and other requirements
| Subscription |
Accounts Receivable Taxes |
|---|---|
| Regional availability |
Canada |
| User type |
Business |
| Permissions |
Accounts Receivable
|
