Finance: Cash Discounts and Terms in Debit Adjustments

In previous versions of MYOB Acumatica, it was not possible for users to specify the due date in debit adjustments that were created in the system. As a result, the debit adjustments that appeared in AP aging reports had due dates that were the same as the current date and could not be used in cash flow forecasting. Also, users could not specify a cash discount for a debit adjustment. As a result, if the original bill with a cash discount was reversed, the created debit adjustment did not have the cash discount that the bill had.

To address these issues, in MYOB Acumatica 2024.1, the use of credit terms can be enabled for debit adjustments, and users can create debit adjustments with cash discounts.

The following sections describe the UI changes and changes in document processing that have been made to support this functionality.

Changes to the Accounts Payable Preferences Form

The following UI changes have been made on the General tab of the Accounts Payable Preferences (AP101000) form:

• In the Data Entry Settings section, the Use Credit Terms in Debit Adjustments check box (see Item 1 in the following screenshot) has been added. If this check box is selected, credit terms can be specified for debit adjustments created on the Bills and Adjustments (AP301000) form. These debit adjustments can be subject to cash discounts.
• In the VAT Recalculation Settings section, the Debit Adjustment Description has been renamed to VAT Adjustment Description (Item 2), because now debit adjustments and credit adjustments can be generated to adjust VAT on early payments.

Changes to the Bills and Adjustments Form

If the Use Credit Terms in Debit Adjustments check box is selected on the Accounts Payable Preferences (AP101000) form, the following changes occur for a document with the Debit Adj. type on the Bills and Adjustments (AP301000) form:

• The Terms box (see Item 1 in the screenshot below) becomes available. By default, the system inserts the credit terms assigned to the vendor on the Vendors (AP303000) form, but the user can override this setting (or clear the box; this setting is optional).

  If the user clears the Terms box, the system will clear the Due Date and Cash Discount Date boxes, set the Cash Discount box to 0.00, and make these three boxes unavailable.

• The Due Date and Cash Discount Date boxes (Item 2) become available. As is the case with bills, the system calculates the dates in these boxes based on the selected credit terms and the document date.
• The Cash Discount box (Item 3) becomes available. If credit terms with a cash discount are selected in the Terms box, this box displays the cash discount calculated by the system, which will be applied if the document is paid before the Cash Discount Date.

Changes to the Processing of Debit Adjustments

The following table shows the availability of the Terms, Cash Discounts Date, Due Date, and Cash Discount boxes depending on the status of the existing debit adjustment that the user opens on the Bills and Adjustments (AP301000) form.

When a user creates a debit adjustment by copying an existing one, the system inserts the settings as follows:

• If the Use Credit Terms in Debit Adjustments check box is selected on the Accounts Payable Preferences (AP101000) form, the Terms is copied from the original document, if specified; otherwise, the Terms is copied from the vendor's settings. The values in the Cash Discount Date, Due Date, and Cash Discount boxes are calculated based on these terms. All these boxes are available.
• If the Use Credit Terms in Debit Adjustments check box is cleared on the Accounts Payable Preferences form, the Terms, Cash Discount Date, and Due Date settings are empty, and the Cash Discount is 0.00. All these boxes are unavailable.

When the user creates a debit adjustment by reversing a bill or a credit adjustment, the system inserts the settings as follows:

• If the Use Credit Terms in Debit Adjustments check box is selected on the Accounts Payable Preferences (AP101000) form, the Terms, Cash Discount Date, Due Date, and Cash Discount settings are copied from the original document, and these boxes are available.
• If the Use Credit Terms in Debit Adjustments check box is cleared on the Accounts Payable Preferences form, the Terms, Cash Discount Date, and Due Date settings are empty, and the Cash Discount is 0.00. All these boxes are unavailable.

When the user creates a credit adjustment by reversing a debit adjustment, the system inserts the settings as follows:

• If the debit adjustment has credit terms specified, its Terms, Cash Discount Date, Due Date, and Cash Discount settings are copied to the credit adjustment.
• If the debit adjustment has no credit terms specified, the Terms are copied from the vendor settings, and the Cash Discount Date, Due Date, and Cash Discount settings are calculated based on these terms.

If a debit adjustment created on the Bills and Adjustments form has credit terms specified in the Terms box and the Pay by Line check box is selected, the amount in the Cash Discount box is distributed among all the document lines.

If a debit adjustment created on the Bills and Adjustments form has credit terms of the Multiple installment type, cash discounts are not supported. In other words, the Cash Discount is set to 0.00 and disabled. If the user changes the credit terms in the Terms box, the system will recalculate the Cash Discount value depending on the selected credit terms.

For debit adjustments created automatically by the system on the Expense Claim (EP301000) and Purchase Receipts (PO302000) forms, imported via an import scenario, or imported via the API, the system fills in the Terms, Cash Discount Date, Due Date, and Cash Discount boxes as follows:

• If the Use Credit Terms in Debit Adjustments check box is selected on the Accounts Payable Preferences form, these boxes are available; the system copies the Terms from the vendor's settings, and the other settings are calculated based on these terms.
• If the Use Credit Terms in Debit Adjustments check box is cleared on the Accounts Payable Preferences form, these boxes are empty and unavailable.

Changes to the Checks and Payments Form

On the Application History tab of the Checks and Payments (AP302000) form, the VAT Debit Adj. column has been renamed to VAT Adj.. This column displays a link to a VAT adjustment. If the user clicks this link, the system opens the selected debit adjustment or credit adjustment on the Bills and Adjustments (AP301000) form.

Changes to the Generate VAT Debit Adjustments Form

The Generate VAT Debit Adjustments (AP504500) form has been renamed to Generate AP Tax Adjustments (AP504500). This form is now used for the generation of debit adjustments and credit adjustments. The following UI changes (also shown in the screenshot below) have been made to the form:

• The Consolidate Debit Adjustments by Vendor check box has been renamed to Consolidate VAT Adjustments by Vendor (see Item 1 in the screenshot below). If this check box is selected, the system will create one credit adjustment for multiple debit adjustments. If the table contains multiple documents (any combination of bills, credit adjustments, and debit adjustments), all for the same vendor, when the user clicks Process All on the form toolbar, the system will create the following documents:
  • One debit adjustment for the selected bills and credit adjustments
  • One credit adjustment for the selected debit adjustments
• The Debit Adjustment Date box has been renamed to VAT Adjustment Date (Item 2).

The system also includes debit adjustments with credit terms in the list of documents shown in the table of the form.

When the user selects the unlabeled check box for any number of debit adjustments and clicks Process on the form toolbar, the system creates a credit adjustment for each debit adjustment and fills in its settings as follows:

• The Terms setting is filled in by default from the vendor's settings.
• If the debit adjustment has credit terms with a cash discount, the system copies Terms from the vendor settings, but it creates a credit adjustment without a cash discount. That is, the credit adjustment's Cash Discount Date is the same as the Due Date, and the Cash Discount is set to 0.00.

When the user selects the unlabeled check for a credit adjustment or a bill and clicks Process on the form toolbar, the system creates a debit adjustment and fills in its settings as follows:

• If the Use Credit Terms in Debit Adjustments check box is selected on the Accounts Payable Preferences (AP101000) form, the credit terms are copied from the vendor's settings.
• If the Use Credit Terms in Debit Adjustments check box is cleared on the Accounts Payable Preferences (AP101000) form, no credit terms are specified.

Regardless of the state of the Use Credit Terms in Debit Adjustments check box, the debit adjustment is created without a cash discount. That is, the debit adjustment's Cash Discount Date is the same as the Due Date, and the Cash Discount is set to 0.00.

Changes to the Journal Vouchers Form

On the Journal Vouchers (GL304000) form, suppose that a user adds a new line to the table. If the user selects ADR in the Module Tran. Type column of the lookup table that opens in the Tran Code column of the form, the system does the following:

• If the Use Credit Terms in Debit Adjustments check box is selected on the Accounts Payable Preferences (AP101000) form, inserts the credit terms from the vendor's settings and makes the Terms, Due Date, Cash Discount Date, and Cash Discount columns available. The user can override the credit terms or clear the column.
• If the Use Credit Terms in Debit Adjustments check box is cleared on the Accounts Payable Preferences form, leaves the credit terms empty and makes the Terms, Due Date, Cash Discount Date, and Cash Discount columns unavailable.

Changes to the Process Bank Transactions Form

On the Process Bank Transactions (CA306000) form, a user can now select a Receipt bank transaction and link this line to a debit adjustment with a cash discount on the Create Payment tab. When a user processes the records on this form, the system will create an AP refund and apply it to the debit adjustment. If the application date is within the cash discount period of the debit adjustment, the cash discount will be applied.

Debit adjustments with cash discounts are shown on the Match to Invoices tab of the form. Users can match debit adjustments to Disbursement bank transactions. This is required if a vendor pays bills and debit adjustments together and the total amount of the bills exceeds the total amount of the debit adjustments.

Changes to the Aging Reports

Debit adjustments with credit terms specified are displayed in the following AP aging reports as described:

• AP Aging (AP631000) and AP Aging MC (AP631100): Based on the Due Date of the debit adjustment, the system shows the document amount either in the Current column or in one of the Past Due columns.
• AP Coming Due (AP631500) and AP Coming Due MC (AP631600): Based on the Due Date of the debit adjustment, the system shows the document amount either in the Past Due column or in one of the Coming Due columns.
• AP Aged Period-Sensitive (AP630500): Based on the Due Date of the debit adjustment, the system shows the document amount either in the Current column or in one of the Past Due columns.

Upgrade Notes

After an upgrade to MYOB Acumatica 2024.1, on the Accounts Payable Preferences (AP101000) form, the Use Credit Terms in Debit Adjustments check box will be cleared. Users will be able to select and clear this check box at any time after the upgrade. (Data entry forms will support the processing of both types of debit adjustments—with credit terms and without credit terms.)

If the user selects the Use Credit Terms in Debit Adjustments check box on the Accounts Payable Preferences form after the upgrade, new debit adjustments will be created with credit terms by default. However, users will be able to clear the Credit Terms box or for unreleased debit adjustments.

Additional Information

For general information about debit adjustments with credit terms and cash discounts, see Debit and Credit Adjustments: Debit Adjustments with Cash Discounts.

For details on how to process a debit adjustment with a cash discount, see Debit and Credit Adjustments: To Process a Debit Adjustment with a Cash Discount.