The cash discount is not automatically calculated when you pay bills in Small Business Accounting (898565)


The information in this article applies to:

  • Microsoft Office Small Business Accounting 2006
  • Microsoft Office Small Business Management Edition 2006

SYMPTOMS

The cash discount is not automatically calculated when you pay bills in Microsoft Office Small Business Accounting. You may notice that the Cash Discount column displays $0 even though the payment date is less than the discount date.

RESOLUTION

You have to manually calculate the discount amount before you pay the bill.
  1. On the Vendors menu, click Pay Bills to open the Pay Bills window.
  2. Click the Discount Date column heading to sort the bills in ascending order by the discount date.
  3. Make a note of all the bill numbers that should receive a discount. These bill numbers have a discount date that is today or a later date.
  4. Close the Pay Bills dialog box.
  5. On the Vendors menu, point to Vendor Lists, and then click Bill and Item Receipts.
  6. Double-click each bill that should receive a discount, and then make a note of the Payment terms for each one.
  7. On the Vendors menu, click Pay Bills.
  8. In the Bills due grid, click to select the check box in the Pay column for each bill that is being paid.
  9. Calculate the cash discount for each bill to be paid. To calculate the cash discount, multiply the original amount by the cash discount percentage, and then type the discount in the Cash Discount field.
  10. Repeat steps 8 and 9 for each bill that has an available discount.
  11. Click to select any other bills that you want to pay.
  12. Click Save and Close.

Note Typically, an early payment discount is available only on bills that have not had any other credits or payments applied. These bills are the ones where the amount in the Original Amount column and the amount in the Amount due column in the Pay Bills dialog box are the same. You may have to work with each vendor to determine whether an early payment discount is available on these types of bills.

MORE INFORMATION

Steps to reproduce the problem

  1. On the Vendors menu, point to New, and then click New Vendor.
  2. Type a name in the Vendor name field.
  3. In the Vendors dialog box, Click the Details tab. In the Payment terms drop-down list, click 2% 10 Net 30.
  4. Click Save and Close.
  5. On the Vendors menu, click Enter Bills.
  6. In the Vendor Bill dialog box, click the vendor that you created in step 2 in the Vendor name field.
  7. Choose one of the items in the Name column, and then type $100 in the Unit Price column.
  8. Click Save and Close.
  9. On the Vendors menu, click Pay Bills.
  10. Click to select the check box in the Pay column in the Bills due grid to select the bill that you created in steps 5 through 8.
The Cash Discount is $0 instead of $2.00 even though you are paying within the period of the discount date.
Modification Type:MinorLast Reviewed:8/10/2005
Keywords:kbprb KB898565 kbAudEndUser
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