Dynamics 365 Business Central – Take Payment Discount on a Payables Invoice that was posted without payment discount


When posting a payables invoice in Dynamics 365 Business Central you can specify payment discount that can be taken if the invoice is paid early. You define this using the option below

Please note this can also be defaulted for you onto the purchase invoice from the payment terms on the vendor.

However what happens if the “Payment Discount %” wasn’t entered onto the invoice when it was posted? How can you take payment discount?


Lets say I’ve posted an invoice as per below for £100.00 and I wish to take 5%, or £5.00, as a payment discount. (Therefore I should only pay £95.00 and take the £5.00 as discount). However at the time of posting the invoice I didn’t specify a “Payment Discount %’

First create the payment journal selecting the Vendor as per below and click “Apply Entries”. (no need to enter an amount at this point)

Once in the “Apply Entries” window click into “Remaining Pmt. Disc. Possible” and enter £-5.00. Also click into the “Pmt. Discount Date” and change the date to a date after the date of the payment. In my case I’ll change this to 01/11/2020, as my payment date is 31/10/2020

Now when I click “Process > Set Applies-to ID” although it appears to show the full amount being applied, if you look at the foot of page the Payment discount is showing £5.00 and the Applied Amount shows £-95.00

If I click OK this shows the payment amount of £95.00

After I post the payment and check the ledger entries I can see a payment for £95.00 has cleared the full amount of the invoice

Also, drilling down on the “Remaining Amount” of the Payment you can see the additional “Detailed Ledger Entry” for the discount:

So the key things to note are, when applying the invoice ensure you enter the amount of discount you wish to take in the “Remaining Pmt. Disc. Possible” and also change the “Pmt. Discount Date” so its after the date of the payment.

Thanks for reading!

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