Correction: And that performance bonus would be (approximately) equal to the total FIN_PAYMENT_DISC discounts (and VAT amounts thereon) on invoices of that period.
Should have been: And that performance bonus would be (approximately) equal to the total FIN_PAYMENT_DISC discounts (and VAT amounts thereon) that would have otherwise be stated on invoices of that period. Met vriendelijke groet, Pierre Smits *Proud* *contributor** of* Apache OFBiz <https://ofbiz.apache.org/> since 2008 (without privileges) Proud contributor to the ASF since 2006 *Apache Directory <https://directory.apache.org>, PMC Member* On Fri, Dec 3, 2021 at 12:43 PM Pierre Smits <[email protected]> wrote: > This whole controversy regarding FIN_PAYMENT_DISC and VAT corrections led > to (in B2B) to framework agreement conditions between supplier and customer > about being credited for good payment performance over time, meaning that > if and when during a period (quarter, half-year, year) the customer would > pay on time, the supplier would send a credit invoice for a performance > bonus, with VAT calculation. And that performance bonus would be > (approximately) equal to the total FIN_PAYMENT_DISC discounts (and VAT > amounts thereon) on invoices of that period. > > Met vriendelijke groet, > > Pierre Smits > *Proud* *contributor** of* Apache OFBiz <https://ofbiz.apache.org/> since > 2008 (without privileges) > Proud contributor to the ASF since 2006 > > *Apache Directory <https://directory.apache.org>, PMC Member* > > > On Fri, Dec 3, 2021 at 12:30 PM Pierre Smits <[email protected]> > wrote: > >> Hi Ingo, >> >> First of all, FIN_PAYMENT_DISC, or Skonto rabat, as it is called in >> Germany/Austria, is in essence a credit mechanism. >> It is not a discount on price. Therefor subject to different fiscal rules >> (regarding VAT) than just goods/services invoicing (I don't know how it is >> in Germany/Austria and other EU countries), but here in the Netherlands >> credit transactions are VAT exempt). >> >> If the organisation is following a different methodology (i.e. >> considering FIN_PAYMENT_DISC not treating as VAT exempt), then he must >> ensure that on the invoice (which states the terms) VAT amounts are stated >> for both FIN_PAYMENT_TERM and FIN_PAYMENT_DISC. Corrections after the fact >> (the invoice, a legal/fiscal document for both supplier and customer) >> vis-a-vis VAT declarations is a path towards increased risk (fiscal audits, >> etc.). >> >> Way back when I was working in retail (with both German suppliers and >> Customers) responsible for accounting, we had the same issues over and over >> again. Customers would subtract the discount, even after the deadline for >> the term had passed, and assistants would register purchase invoices not >> for the total invoice amount, but for the discounted amount (with VAT for >> the full net amount) and those invoices would be paid also after the >> discount term. We were regularly bombarded with overviews of unpaid parts >> of invoices, and send the same out to our customers. Not only taking up a >> lot of resources' time to follow up and correct, but also stressing the >> relationship with customers and/or suppliers. >> >> We came up with a solution that alleviated both (time needed to follow >> up, and stress reduction). We would take the VAT amount (regardless of the >> FIN_PAYMENT_DISC) stated on the invoice and register that in GL (for >> fiscal reporting), but would write off the remainder of the invoice (after >> payment of invoice with the FIN_PAYMENT_DISC deducted) and to a specific >> GL account. >> >> You can do the same in a custom function on the invoice: have a trigger >> visible to the appropriate user constrained through: >> >> - Visible only when the FIN_PAYMENT_DISC is associated with the >> invoice, and >> - the amount to write off is equal to the calculated FIN_PAYMENT_DISC >> amount >> >> And then have the function generating GL transaction and GL transaction >> enttries for the write-off of the remainder of the invoice (in essence >> marking the invoice as paid in full, for overviews, etc.) to the >> appropriate GL accounts. >> >> Met vriendelijke groet, >> >> Pierre Smits >> *Proud* *contributor** of* Apache OFBiz <https://ofbiz.apache.org/> since >> 2008 (without privileges) >> Proud contributor to the ASF since 2006 >> >> *Apache Directory <https://directory.apache.org>, PMC Member* >> >> >> On Fri, Dec 3, 2021 at 11:13 AM Ingo Wolfmayr <[email protected]> >> wrote: >> >>> Hi Pierre, Hi Nicolas, >>> >>> just to be more precise: >>> >>> The order is completed and sent. The payment terms have been created via >>> customer agreements and are shown on the invoice. The invoice have been >>> sent. >>> >>> Not it's the customers turn. If he pays within the payment target, he >>> can subtract the discount on the payment. >>> >>> On the bank account it shows € 98,- instead of € 100,- which is fine. >>> >>> The invoice needs a payment of 100% to be completed. Building the >>> adjustment in vie manual accounting tansactions does solve the problem for >>> the accounting, but not for the office staff working on the invoices. >>> >>> I guess I have to add the following functionallity: >>> - adding this special invoice discount type after the invoice has been >>> approved: this would enable the system to make the correct accounting >>> transactions, add tax adjustments and the office staff will be able to >>> complete the invoice + it can be easily used on reports. >>> >>> What do you think. Anything I missed? >>> >>> Best regards, >>> Ingo >>> >>> >>> >>> -----Ursprüngliche Nachricht----- >>> Von: Pierre Smits <[email protected]> >>> Gesendet: Freitag, 3. Dezember 2021 09:55 >>> An: [email protected] >>> Betreff: Re: Invoice - Discount >>> >>> Nicolas, >>> Thanks for sharing your comments. >>> >>> Would you not agree that getting a payment for an order that hasn't been >>> approved/processed (and the subsequent delivery not having taken place) and >>> thus no invoice would be a bit atypical? An order adjustment (after the >>> approval of the order) would then also be atypical... >>> >>> Met vriendelijke groet, >>> >>> Pierre Smits >>> *Proud* *contributor** of* Apache OFBiz <https://ofbiz.apache.org/> >>> since >>> 2008 (without privileges) >>> Proud contributor to the ASF since 2006 >>> >>> *Apache Directory <https://directory.apache.org>, PMC Member* >>> >>> >>> On Fri, Dec 3, 2021 at 9:40 AM Pierre Smits <[email protected]> >>> wrote: >>> >>> > Gutentag Ingo, >>> > >>> > This is one of the payment terms, and should be reflected in >>> > agreement, and order before it winds up in an invoice. >>> > >>> > Related term records can be found in data definitions for entity >>> > TermType, and most probably applied are: >>> > >>> > - FIN_PAYMENT_TERM - for the standard >>> > - FIN_PAYMENT_DISC - for the discount condition >>> > >>> > As for your use case (which is very common in German / Austrian >>> > business), >>> > >>> > 1. the invoice can't be altered after it has been approved and >>> > processed for posting to GL, >>> > 2. the payment can't be altered after it has been received (as it >>> also >>> > needs to align with what is reported on bank statement, etc),and >>> processed >>> > for posting to GL >>> > >>> > Remains the outstanding balance of the invoice. With current >>> > functionality, this needs to be manually adjusted in the GL >>> > transaction regarding the payment association with the invoice. >>> > >>> > Met vriendelijke groet, >>> > >>> > Pierre Smits >>> > *Proud* *contributor** of* Apache OFBiz <https://ofbiz.apache.org/> >>> > since >>> > 2008 (without privileges) >>> > Proud contributor to the ASF since 2006 >>> > >>> > *Apache Directory <https://directory.apache.org>, PMC Member* >>> > >>> > >>> > On Fri, Dec 3, 2021 at 8:49 AM Ingo Wolfmayr <[email protected]> >>> > wrote: >>> > >>> >> Hi everybody, >>> >> >>> >> >>> >> >>> >> I have an accounting question regarding discount on early payment. >>> >> >>> >> >>> >> >>> >> For example a customer has a payment target of 10 days. If he pays >>> >> within those 10 days, he can subtract a discount of 2%. >>> >> >>> >> There is an invoice amount of € 100,- (the invoice is sent to the >>> >> customer and therefore editing the invoice is disabled) >>> >> >>> >> >>> >> >>> >> The customer pays € 98,- A payment is created and assigned to the >>> >> invoice. The invoice says € 2,- open. >>> >> >>> >> >>> >> >>> >> How do I get the discount into the system? >>> >> >>> >> >>> >> >>> >> Best regards, >>> >> Inog >>> >> >>> >> >>> >> >>> >> Mag. (FH) Ingo Wolfmayr >>> >> >>> >> *Wolfix Solutions* >>> >> >>> >> Gänsgasse 14 >>> >> >>> >> A-5282 Ranshofen >>> >> >>> >> >>> >> >>> >> Tel.: +43 (0) 664 2549626 >>> >> >>> >> Web: https://www.wolfix.at >>> >> >>> >> Xing: https://www.xing.com/profile/Ingo_Wolfmayr/ >>> >> >>> >> >>> >> >>> >> [image: emailsignatur] >>> >> >>> >> >>> >> >>> >> >>> >> >>> > >>> >>
