Debit and Credit Adjustments: To Process a Debit Adjustment with a Cash Discount

The following activity will walk you through the process of processing a debit adjustment with a cash discount.

Story

Suppose that on January 30, 2026, SweetLife Fruits & Jams received a credit memo from Compulink and Co. in the amount of $160 to decrease the accounts payable balance of the vendor. Also, the vendor wants to take a 3% cash discount by paying this document within the cash discount period, which is 10 days.

Acting as a SweetLife accountant, you need to configure the system to turn on the creation of debit adjustments with cash discounts. You then need to process the vendor's credit memo as a debit adjustment and create a vendor refund for it within the cash discount period.

Process Overview

In this activity, on the Accounts Payable Preferences (AP101000) form, you will select the Use Credit Terms in Debit Adjustments check box. On the Bills and Adjustments (AP301000) form, you will create a debit adjustment and select the credit terms with a cash discount for it. On the Checks and Payments (AP302000) form, you will create a refund and apply the debit adjustment to it. You will also review the amount paid and the cash discount for the refund to make sure that the cash discount has been applied.

System Preparation

Before you begin processing a debit memo with a cash discount, do the following:

1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as Anna Johnson by using the johnson username and the 123 password.
2. In the info area at the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date is set to 1/30/2026. If a different date is displayed, click the Business Date menu button and select 1/30/2026 from the calendar. For simplicity, you'll create and process all documents in this activity using this business date.
3. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Updating the Accounts Payable Settings

To turn on the use of credit terms and cash discounts in debit adjustments, do the following:

1. Open the Accounts Payable Preferences (AP101000) form.
2. On the General tab (Data Entry Settings section), select the Use Credit Terms in Debit Adjustments check box.
3. On the form toolbar, click Save to save the changes.

Step 2: Creating a Debit Adjustment

To create a debit adjustment with credit terms specified, do the following:

1. On the Bills and Adjustments (AP301000) form, create a new record.
2. In the Summary area, specify the following settings:
   • Type: Debit Adj.
   • Vendor: COMPULINK
   • Date: 1/30/2026 (inserted automatically)
   • Terms: 310N30

     According to these credit terms, the vendor gives a 3% cash discount if the document is paid within 10 days and no cash discount is the document is paid within 30 days.

   • Due Date: 3/1/2026 (calculated automatically based on the selected credit terms)
   • Cash Discount Date: 2/9/2026 (calculated automatically based on the selected credit terms)

     To take a 3% cash discount, SweetLife needs to pay the debit adjustment (that is, create a refund) before this date.

   • Description: Credit memo from Compulink
3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the added row:
   • Branch: HEADOFFICE (inserted by default)
   • Transaction Descr.: Credit memo from Compulink
   • Ext. Cost: 160

   Notice that in the Summary area, the Cash Discount box shows 4.80.

4. On the form toolbar, click Remove Hold, and then click Release to release the debit adjustment.

Step 3: Creating a Refund to Apply to the Debit Adjustment

To create a refund for the vendor, which applies the debit adjustment to it, do the following:

1. Click the Business Date menu button, and select 2/7/2026 on the calendar.
2. On the Checks and Payments (AP302000) form, create a new record.
3. In the Summary area, specify the following settings:
   • Type: Refund
   • Application Date: 2/7/2026
   • Vendor: COMPULINK
   • Payment Ref.: COMP0003
4. On the Documents to Apply tab, click Add Row on the table toolbar, and specify and review the following settings in the added row:
   • Document Type: Debit Adj.
   • Reference Nbr.: The reference number of the debit adjustment that you created in Step 2
   • Amount Paid (USD): 155.20 (calculated automatically because the application date is within the cash discount period)
   • Cash Discount Taken (USD): 4.80 (calculated automatically based on the vendor's credit terms)
5. On the form toolbar, click Save to save the changes.
6. On the form toolbar, click Remove Hold, and click Release to release the refund.