Automatic Document Vendor Discounts: Implementation Activity

In this activity, you will learn how to configure an automatic document discount, and you will explore how it is applied to a AP bill.

Story

Suppose that starting in January 2019, Blueline Advertising provides its most valued customers, including SweetLife, an unconditional discount of 3% that is applied to any order.

On January 30, 2019 SweetLife purchased the installation of 10 billboards from Blueline (which is equivalent to 20 hours of billable work).

Acting as the SweetLife accountant, you need to define the 3% discount. You then need to create a bill for Blueline for the purchased billboard installation services.

Process Overview

You configure a discount code on the Vendor Discount Codes (AP204000) form and then configure a discount sequence on the Vendor Discounts (AP205000) form.

On the Bills and Adjustments (AP301000) form, you create an AP bill to which the discount may be applied. You then review the Discount Details tab of the form and review how the discount is applied.

Before You Proceed

Before you start the activity, do the following:

Launch the MYOB Advanced website, and sign in as an accountant by using the johnson login and the 123 password.
In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, make sure that the business date in your system is set to 1/30/2019. If a different date is displayed, click the Business Date menu button and select 1/30/2019. For simplicity, in this lesson, you will create and process all documents in the system on this business date.
On the Company and Branch Selection menu, also on the top pane of the MYOB Advanced screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create an Unconditional Document Discount by Percent

To configure an unconditional document discount by percent, do the following:

Open the Vendor Discount Codes (AP204000) form.
In the Selection area, in the Vendor box, select BLUELINE.
On the form toolbar, click Add Row, and specify the following settings in the added row:
- Vendor: BLUELINE
- Discount Code: DOCUN00000
- Description: Automatic unconditional document discount
- Discount Type: Document
- Applicable To: Unconditional
- Auto-Numbering: Selected
With these settings, discounts configured based on this discount code will be applicable to a document as a whole; because the Manual check box is cleared, these document discounts will be applied automatically.
On the form toolbar, click Save.
Open the Vendor Discounts (AP205000) form.
On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
- Vendor: BLUELINE
- Discount Code: DOCUN00000
- Discount By: Percent
- Active: Selected
- Description: Automatic unconditional document discount - By Percent
These settings convey that this discount (of the discount code you just defined for unconditional document discounts) is by percent.
On the Discount Breakpoints tab, click Add Row on the table toolbar, and specify the following settings in the added row:
- Pending Break Amount: 0
- Pending Discount Percent: 5
- Pending Date: 1/1/2019
With these settings, the discount of 3% is applicable to any document created for Blueline Advertising regardless of its amount.
On the form toolbar, click Save.
On the form toolbar, click Update Discounts.
In the Update Discounts dialog box, which opens, leave the default value (1/30/2019) in the Filter Date box, and click OK.

Step 2: Create the AP Bill and Explore Discount Application

To create the bill for Blueline Advertising and explore how the automatic document discount is applied, do the following:

Open the Bills and Adjustments (AP301000) form.
On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
- Type: Bill
- Vendor: BLUELINE
- Date: 1/30/2019 (inserted by default)
- Description: Billboard installation - January 2019
On the Document Details tab, click Add Row, and specify the following settings in the added row:
- Branch: HEADOFFICE
- Inventory ID: BILLBINSTA
- Quantity: 20
- UOM: HOUR
- Unit Cost: 80
Notice that the Discount Total box of the Summary area of the form now has the value of $48, which is the amount of the unconditional discount which has been automatically applied to the bill as this discount is effective for any documents for Blueline.
On the Discount Details tab, notice that the Discount Code column contains the DOCUN00000 value, which is the vendor discount code for the unconditional document discount that you have configured in Step 1, and the Sequence ID column contains the ID of the discount sequence, which you also have configured in Step 1. The Discount Percent is 3%, which you have specified in the discount sequence. Note that the discount amount was calculated automatically and is now reflected in the Discount Amt. column.
In the Summary area, clear the Hold check box, and on the form toolbar, click Release to release the bill.
On the Financial Details tab, click the link in the Batch Nbr. box to review the GL batch, which the system opens in a pop-up window on the Journal Transactions (GL301000) form.
The 20000 - Accounts Payable account is credited and the 61000 - Advertising Expense account is debited in the amount of the bill. Notice that the discount applied to the entire document is credited to the 49000 - Discount Taken account.

Step 3: Make the Created Discounts Inactive

To make the discounts you created in this activity inactive so that they will not affect other documents later, do the following:

Open the Vendor Discounts (AP205000) form.
In the Discount Code box, select LIITA00000.
In the Sequence box, select LIITA00000.
In the Summary area, clear the Active check box; save the discount.
Repeat Instructions 2–3 for the LIITC00000 discount code.