Handling Customer Underpayments and Discounts in Dynamics 365 Business Central

 

Handling Customer Underpayments and Discounts in Dynamics 365 Business Central

When managing customer payments in Dynamics 365 Business Central, you may encounter situations where customers underpay their invoices but still qualify for payment discounts. Here's how to handle such scenarios and ensure discounts are applied appropriately.

 

Understanding Payment Discounts

Payment discounts are usually tied to the payment terms agreed upon with customers. For instance, customers might receive a 2% discount if they pay within 10 days of the invoice date. This discount is generally applied to the total invoice amount.

 

Scenario: Partial Payment and Discounts

If a customer makes a partial payment that is less than the invoice total, Business Central will not automatically apply the discount. For the discount to be applied, the following conditions must be met:

 

Full Payment within Terms: The full payment must be made within the specified discount period as per the payment terms.

Discount Criteria: The amount paid should meet the criteria for the discount to be applied.

Key Considerations

 

Invoice Status: Partial payments typically do not qualify for discounts because the invoice is still outstanding.

Payment Tolerance: Business Central may consider a payment tolerance when applying discounts. However, the unpaid amount must fall within the acceptable tolerance level to still qualify for a discount.

Configuration: Check the payment terms setup in Business Central to ensure discount rules are configured correctly.

Conclusion

Applying customer discounts in the case of underpayments requires careful attention to payment terms and system configuration. By understanding how Business Central handles discounts and setting up the appropriate policies, you can ensure accurate and fair application of discounts while managing customer payments effectively.