Using Discounts and Adjustments

Discounts may be taken if the customer has certain Terms (i.e. 2% 10 Net 30) assigned to the Sales or Purchase Order. During payment receipt or issue (on Sales and Purchase Orders, respectively), any applicable Terms discount may be respected or ignored using the available Discount field/flag.

The Order Adjustment transaction allows authorized users to add non-stock parts or modify existing non-stock parts on either received, but not invoiced Purchase Orders or shipped, but not invoiced Sales Orders. These features are particularly useful in situations where additional freight or custom charges need to be added to orders. This transaction can be completed in three ways: via Accounting > Order Adjustments (for both Sales and Purchasing), the "Adjustments" button on the Print Invoices form via Print Outs > Invoices (for Sales only), and the "Adjustments" button on the Orders to be Invoiced form via Purchasing > Invoice (for Purchasing only).

Configuration

  • Terms must be established and one or more should be set up with some kind of discount, such as 2% 10, Net 30. For more information, refer to Managing Order Terms and Customer Credit.
  • Sales Orders and Purchase Orders must be setup and shipped or received, depending on which order type (Sales or Purchase) the adjustment will be added to. For more information, refer to Entering Sales Orders, OutBound Inventory, Entering Purchase Orders, and Receiving Purchase Orders. If adding Discounts to a Sales Order, the order must also be invoiced, but not yet paid.

Process

Adding Discounts to orders

Option 1 - used for Sales Orders

Discounts may be entered during the initial Sales Order entry and respected when receiving payment.

  1. Navigate to Sales > Order Entry.
  2. Follow steps 2-7 of Entering Sales Orders Using the Order Entry Function.
  3. On the Edit Sales Order Line form, navigate to the Pricing tab and enter an amount, in percent form, in the "Discount" field.
  4. Complete the rest of the process by following steps 8-15 of Entering Sales Orders Using the Order Entry Function.
  5. The order may then be shipped, invoiced, and paid using the normal processes. Note that if using the Invoice/Pre-pay function, once an amount is entered in the "Amount Paid" field, users can check off the "Take Discount" flag. This will take into account any discounts entered on the Sales Order line level. When receiving payment for Sales Orders, applicable discounts based on Terms selected may be respected or ignored by using the "Discount" field. This can be done by selecting either "Take Discount", which is used if the customer has taken the Terms discount even if they are outside the Terms, or "Use Order Setting", which is most frequently used and is based on Terms codes assigned to the Sales Order. Note that the option in the "Discount" field on the Sales Order Payment form determines how discounts will be applied when orders are moved to the right-hand side of the form, not after they have been moved. If necessary, users may move orders back to the left-hand side of the form, reselect an option in the "Discount" field, and then move orders back to the right-hand side of the form.

Option 2 - used for Purchase Orders

Discounts may be entered on a line level or on the overall Purchase Order during the initial Purchase Order entry and respected when paying Vendor invoices.

  1. Navigate to Purchasing > Order Entry.
  2. Follow the steps detailed in Entering Purchase Orders Using the Order Entry Function but do not yet save.
  3. To enter a discount on the line level, click "Add" to add a Part and on the General tab, enter an amount, in percent form, in the "Discount" field. Note: an amount listed here will not affect manual pricing.
  4. To enter a discount on the overall Purchase Order, navigate to the Pricing tab. Enter an amount, in percent form, in the "Discount" field. If a value is entered here prior to adding lines, prices will reflect the discount entered. If entered after adding lines, click the "Recalculate Prices" button to take the discount into effect. Note: an amount listed here will not affect manual pricing.
  5. Save the Purchase Order as usual. The order may then be received, invoices may be entered, and payments may be posted as normal. Note that if using the Invoice/Pre-pay function, once an amount is entered in the "Amount Paid" field, users can check off the "Take Discount" flag. This will take into account any discounts entered on the Sales Order line level. When paying Vendor invoices, applicable discounts based on Terms selected may be respected or ignored by using the "Take Discount" flag.

Using the Order Adjustments function

Note: Beginning in version 17.01.020, the "Adjustment Date", has been added to the Order Adjustments form. This field is used to set which date will be recorded for the adjustment in the general ledger. Options are "Received Date" and "Today". The security setting "Accounting -- change purchase order adjustment date" allows access to change the default setting for this field.

Option 1 - used for both Sales and Purchasing

  1. Navigate to Accounting > Order Adjustments.
  2. Choose the Report Type depending on what type of order is receiving the Adjustment.
  3. Complete the rest of the pre-filter as needed then click "View" to generate the Orders form.
  4. Highlight the order to be modified and click "Modify" to open the Order Adjustments form.
  5. Click "Add" then enter a Part Number for a non-stocked item.
  6. Select which Account should be charged, then enter a Quantity and Amount.
  7. If there are more charges to be entered, click "Next", otherwise click "Save" and "Exit".
  8. Review the new lines on the order then save and exit the Order Adjustments form.
  9. Continue with the normal Invoicing Sales Orders or Entering Vendor Invoices process.

Option 2 - used for Sales only

  1. Navigate to Print Outs > Invoices.
  2. Complete the pre-filter as needed then click "View" to generate the Print Invoices form.
  3. Highlight the order to be modified and click "Adjustments" to open the Order Adjustments form.
  4. Follow steps 5-8 of Option 1 above.
  5. Continue with the normal Invoicing Sales Orders process.

Option 3 - used for Purchasing only and generally used to enter product price changes.

  1. Navigate to Purchasing > Invoice.
  2. Select a Purchase Order and click "Continue".
  3. Enter an amount in the "Adjustment" field, select the correct Adjustment Account.
  4. Click the "Apply" when finished to complete the invoicing process.

Option 4 - used for Purchasing only and when making adjustments during invoicing. Generally used in situations where adjustments are needed to for charges other than freight or product price changes.

  1. Navigate to Purchasing > Invoice.
  2. Select a purchase order number.
  3. Click the "Continue" button.
  4. Click the "Adjustments" button to display the Order Adjustments form.
  5. Click the "Add" button to display the Order Adjustment form. See the Order Adjustments page for details on all the fields available to this form.
  6. Complete the form as required and save and exit when finished.
  7. Save the Order Adjustments form to complete the process of adding the adjustment. At this point users can continue with the invoicing process.

Option 5 - used for Purchasing only and when making adjustments prior to invoicing. Generally used in situations where adjustments are needed for charges other than freight or product price changes.

  1. Navigate to Purchasing > Invoice.
  2. Click the "Show Orders" button to display the Orders to be invoiced form.
  3. Select an order and click the "Adjustments" buttons in the toolbar. Note that adjustments made with this button occur prior to invoicing the order and therefore will hit the GL on the original PO receipt date. In this case, users will need the "Purchasing -- adjustments prior to invoicing" security set to yes before proceeding.
  4. The Order Adjustments form will be displayed.
  5. Click the "Add" button to display the Order Adjustment form. See the Order Adjustments page for details on all the fields available to this form.
  6. Complete the form as required and save and exit when finished.
  7. Save the Order Adjustments form to complete the process. At this point users can continue with the invoicing process.