Fairwater gives the option to input discounts against vendor invoices. The discounts may be for the Principal, the Agent, or split between the two. As per the below screen shot, the values of the discounts are entered at the Line Item Detail level of the Purchase Order. As shown the discount values are entered as positive amounts and those are subtracted from the amounts that are posted into the Disbursement Account and Accounts Payable.
It is critical that you are careful to input the discount values into the correct columns so the amounts will be recorded properly into the Fairwater accounting records. If there are any doubts about how to input discounts please contact your supervisor for direction.
When entering vendor invoices with discounts please watch the File Amt and Net Buy Amt columns to confirm the correct amounts are being entered and therefore posted to Fairwater accounting.
Box will appear for you to enter discount remark based on the following “Vendor Discount” types:
- ShortPay – You should enter Agent Discount, so that we will short pay the vendor for discount amount. If you fail to enter discount, a box will appear for you to enter reason for not entering discount.
- Rebate – You should NOT enter discount, because these are vendors that send us a rebate check for the discount after we pay them. If you enter a discount, a box will appear for you to enter reason for entering discount on a rebate vendor.
- None – You should NOT enter discount, because these are vendors that do not provide us any discount. If you enter a discount, a box will appear for you to enter reason for entering discount on a vendor who does not provide a discount.
If you fail to enter a discount for an invoice where vendor has been flagged with discount information, you will receive a popup box labeled “Missing Discount”, asking you to enter reason why no discount has been entered (example would be “discount not applicable for MSC vessels”).
The discount remarks entered will appear in the workflow history for that invoice. If you find any vendors that do provide us a discount, but vendor is showing “None” in Fairwater, then please send to Ira Rudnick to update the vendor in Fairwater.