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Accounts Payable : Cash Discounts

Introduction Cash discounts are incentives offered by vendors to encourage customers to make payments within a specified period. In Accounts Payable, Dynamics 365 Finance can be configured to automatically calculate and apply these discounts based on the payment terms agreed with the vendor. This section explains how cash discounts are configured and managed in Dynamics 365 Finance, from setting up the discount parameters and discount principles to linking a discount to a vendor, applying it to a vendor invoice, and processing the payment. Understanding this process helps ensure that available discounts are correctly identified and applied when payments are made within the agreed discount period