10.4.4. Penalties and Discounts

Penalties

SocrateCloud allows you to manage the penalties applicable to customers for not respecting the payment terms. The penalty percent is set at tenant level and is entered in the Penalty percent field, located in the Customer tab, Business Partner window:

This percent value will be applied to the balance account of the invoices that have not been paid, depending on the number of days over the deadline established when defining the documents. The following processes are available for penalties management:

• • Calculate Penalties - used to calculate penalty amounts;

• Generate Penalty Invoices - used to generate invoices based on penalty amounts;

Calculating Penalties

The Calculate Penalties process, located in the Quote-to-Invoice -> Sales Invoices -> Invoice Penalties menu, is used to generate penalty amounts that can be applied to a customer. Before running the process you can specify the following parameters:

• Business Partner Group, Business Partner, Invoice - selection filters for the invoices based on which penalty amounts are calculated;

  • Date Calculated - date until the number of due days is calculated;

  • Days after due date - the number of days between the due date and the invoice notification date. Will determine the start date for calculating the number of due days. If the number is negative, the due date, as determined by the payment term, will be used;

  • Delete old/existing records - check if you want to delete the corresponding records previously obtained by running this process;

Press the Start button to generate penalty amount records and to view the list with the invoices for which the penalties were calculated:

The generated penalty amount records can be viewed in the Invoice Penalties window, located in Quote-to-Invoice -> Sales Invoices -> Invoice Penalties menu.

Penalty Invoicing

After calculating the penalty amounts, the user can generate penalties invoices by using the Generate Penalty Invoices process found in Quote-to-Invoice -> Sales Invoices -> Invoice Penalties. Before running the process you can specify the following parameters:

• Date Calculated, Business Partner Group, Business Partner, Invoice - selection filters for the penalty amount records (Invoice Penalties window) used to generate penalty invoices;

  • Product - the product used for the penalty invoicing;

  • Date Invoiced - the penalty invoice date;

• Document Type, Document Action - parameters used to determine the document type and status for the generated invoices;

Press the Start button to generate invoices based on penalty amounts. The generated invoices can be viewed in the Invoice (Customer) window, located in Quote-to-Invoice -> Sales Invoices.

Discount Management

In SocrateCloud there are two ways to manage customer discounts:

• Payment Term Discounts - by applying a percent discount depending on the allocated payment term;

• Receipt Discounts - by applying a percent discount depending on the receipt amount;

Payment Term Discounts

Payment Term discounts are defined in the Payment Term window, located in the CRM -> Business Partner -> BP Rules menu. Details in Payment Terms.

Whether a discount will be applied or not is determined by the number of days passed between the invoice date and the receipt allocation. If the number of days is less than the discount interval defined for the payment term, the discount will be automatically applied when allocating the receipt.

Receipt Discounts

SocrateCloud allows you to manage receipt discount by generating discount invoices. The receipt discount is specified as a percent value on invoice details in the Cash Discount field, located in the Invoice (Customer) window, Invoice Details tab. The discount amount is calculated for each invoice - receipt allocation as described below:

• Total Receipt Amount = Invoice Line Amount * (1 - Cash Discount %)

• Discount Amount = Allocated Receipt Amount* Cash Discount % / (1 - Cash Discount %);

Obs: Because the discount is specified for invoice lines, in order to determine the receipt discount amount, the receipt is allocated proportionally to invoice lines by amount (including discount).

The Generate Discount invoices process, located in the Quote-to-Invoice -> Sales Invoice- > Discount menu, is used to generate invoices based on the discount amounts from invoice - receipt allocations. Before running the process you can specify the following parameters:

• Organization. BP Group, Business Partner, Invoice, Allocation date, Allocation Detail - selection filters for receipt - invoice allocation, base on which discount invoices will be generated;

• Document Type, payment Rules, Payment Terms, Document Status, Price List - parameters used to define the discount invoices. Details in Entering Invoices;

  • Product - product used to invoice discounts;

Press Start to generate invoices based on receipt - invoice allocations using the selected parameters. The discount amounts on allocations used to generate discount invoices can be viewed in the View Allocation window, Allocation Line tab, Cash Discount Section.

Process results:

• A discount invoice will be generated containing a line for each receipt - invoice allocation containing cash discount values, without Total Invoiced or Closed checked. Each line will contain:

  • Qty = -1;

  • Price = Cash Discount amount taken from the allocation detail;

  • Product - process parameter;

  • Tax = taken from first line that has tax from the source invoice;

• On the source receipt - invoice allocation:

  • The Total Invoice checkbox will be set if discount invoices were generated (and completed) for the whole invoice amount;

  • The Invoice Amount is updated using the value from the (completed) discount invoice generated;

  • The generated Discount Invoice lines will be displayed in the Discount Invoice tab;

Note: If the price on the discount invoice is increased, when attempting to complete it, an error message will be displayed;

The Close Discount process, located in the Open Items menu, is used to close unapproved discounts. After running the process, the Closed checkbox will be applied for the corresponding receipt - invoice allocation details. As a result, you will no longer be able to generate invoice discount based on the respective allocation line.