How to use and setup the functionality of early discount / late charges for Supplier Invoice in Sage X3 version 12

By | August 29, 2019

An early payment discount is one form of trade finance and a way for companies to obtain a discount on a supplier’s invoice in exchange for paying the supplier early. In other words, a company pays less than the full amount due while the supplier receives payment earlier than they would under standard payment terms.

Do the setup as per the requirement by entering early discount/ late charges in days and its rate in percentage. For doing the setup navigate to below paths.

Navigate to: Common data → BP tables → Early discount/late charge

Early Discount/Late Charges
Fig: Early Discount

As in the above Image –

  1. – (minus) in rates indicates discount while rest are charges.
  2. For 0 to – 4 days, the system will consider no discount.
  3. For – 5 to – 09 days, the system will consider – 1% discount.
  4. For – 10 and above days, the system will consider – 10% discount.
  5. Whereas 0 to 9 days, the system will not consider any discount or charges, because it is set to 0.
  6. 10 to 29, days system will consider 5% late charges.
  7. 30 to 59 days, the system will consider 8 % late charges.
  8. And 60 and above, system will consider 10 % late charges.

Now, Navigate to: Parameter –> A/P-A/R accounting –> Payment attributes
Make sure that it has to be Account<=> BP and marked as early discount.

Payment attribute early Discount
Fig: Payment Attribute

Now, Navigate to: Parameter → General parameters → Parameter values → Business Partners (TRS) → Early Disc (TDC).
Right click and go to detail, and enter the default Payment attributes against the line no 4 and 6, which you have created above.

Also, select the due date for the calculation of Discounts / Charges. The possible values are – Open item due date and Invoice date.

Parameters value
Fig: General Parameters TRS mode

Don’t forget to tag account against discount or late charges. To add the same, Navigate to:
Parameter → Financials → Accounting interface → Accounting codes → Payment
Enter the desired location for loss and profit.

Now go to payment terms and define the payment term. Please note that based on Payment term date and Due date basis (Open item or Invoice date) system will consider the Due date.
Now to check, if this is working as per setup, navigate to A/P-A/R accounting → Invoicing → Supplier BP Invoice.

AP/AR Supplier BP Invoice
Fig: Supplier BP Invoice

Create a new Invoice and select Early Discount / Late charge, which you have created above.
Here due date basis and Accounting date is 08/16/19 and the due date is 09/22/19 – Refer above screen shot.

After posting Invoice go to A/P-A/R accounting → Payments → Payment/receipt entry.
Create a Payment entry for the created Invoice. Please make sure that you are creating payment either Backdated or on a future date to avail the early discount / late charges.
As soon as you will select Invoice no, the system will auto calculate Discount/Charges. Refer below screen shot.

AP/AR Payment Receipt entry
Fig: Payment/Receipt Entry

As you can see the system has granted 2% early discount.

The setup explained above is used to calculate the early discount and Late charges.

Hope this works.

About Us
Greytrix – a globally recognized Premier Sage Gold Development Partner is a one-stop solution provider for Sage ERP and Sage CRM needs. Being recognized and rewarded for multi-man years of experience, we bring complete end-to-end assistance for your technical consultations, product customizations, data migration, system integrations, third-party add-on development and implementation expertise.

Greytrix caters to a wide range of Sage Enterprise Management (Sage X3) offerings – a Sage Business Cloud Solution. Our unique GUMU™ integrations include Sage X3 for Sage and Magento eCommerce along with Implementation and Technical Support worldwide for Sage X3 (Sage Enterprise Management). Currently we are Sage X3 Implementation Partner in East Africa, Middles East, Australia, Asia. We also offer best-in-class Sage X3 customization and development services, integrated applications such as POS | WMS | Payment Gateway | Shipping System | Business Intelligence | eCommerce and have developed add-ons such as Catch – Weight  and Letter of Credit for Sage X3 to Sage business partners, end users and Sage PSG worldwide.

Greytrix is a recognized Sage Rockstar ISV Partner for GUMU™ Sage X3 – Sage CRM integration also listed on Sage Marketplace; GUMU™ integration for Sage X3 – Salesforce is a 5-star app listed on Salesforce AppExchange.

For more information on Sage X3 Integration and Services, please contact us at We will be glad to assist you.