Cash Discounts after Credit Memos

– Invoice for $1,000.00 with payment terms of 2% 10 days, net 30 days. Available cash discount is $20.00.

– Credit memo for $100.00 applied to the invoice.

– Customer pays within 10 days an amount of $882.00 (($1,000.00 – $100.00) = $900.00 x 2% = $18.00 -> $900.00-$18.00 = $882.00)

– When entering the payment journal and applying the payment to the invoice, the available cash discount still shows the original $20.00 and not the recalculated $18.00.