My accounting team approached me today with what one would think is a fairly straight forward question, but left me stumped (mainly because I don’t know the AP side of Epicor at all).
When she is doing a check run and there are vendor discounts involved, it seems that the discounts are being applied on the line totals, and not the entire invoice total. Is there a way to change that behavior?
This is normal behavior if you are talking about quantity price breaks. If the line item does not exceed the break quantity, it will not use the price break - even if more than one line item combined does exceed the break quantity.
We haven’t found a workaround here, if someone has, I’m listening.
@Gil_V - No, we are not looking at Quantity Price Breaks. It is more of a situation where some of our vendors say: “Take 2% off the invoice total if paid within 15 days!”
This can be taken care of with Purchasing Terms… this is a Vendor Term of 2/15N30… 2% discount if paid within 15 days, net amount due in 30 days.
You can set those numeric values for anything you like, but this one is not at all uncommon.
I think what you are looking for is on Miscellaneous Charge, check the Include In Terms Discount box.
My guess is that your total includes misc charges on the AP Invoice, and they should be included in the calculation after checking that box.
I’m getting feedback from our finance fellow that Terms is where this is performed, and that the percent off for paying sooner does work as expected.
Happy to help!
@Ernie - I counted my chickens before they were hatched…I have my accounting girl here and she says that the Terms works properly, however it is only applying the discount to the PO total, not the invoice total. So if she goes and adds a miscellaneous line item to the invoice that was not on the PO (Frieght charges for example), the discount is not applied to that line.
Any thoughts on that?
The only thought I would have, and I have NOT tested this, would be to see if you could re-open the Purchase Order and add the Misc Charge onto the PO itself…
@Ernie - That was a discussion that we had internally as well, but have not tested it either. The issue that we would run into with that is that our AP team is not set up as buyers in Epicor, so they have to go back to our purchasing team for a PO to get modified ‘after the fact’.
I am thinking that having to add it to the PO itself is going to be the path we need to follow though. I’ll see what our AP and Purchasing teams think, and test out this option.
Thank you for the suggestion, and if you happen to think of anything else, please let me know.
