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Subject: Re: Payment Discount (a good question)


David

Good stuff here.

>
> I think you'll find that UBL is missing a dedicated field to hold the
settlement
> discount. But whether or not it should have one is a different question.
>

This could be looked at for the next release of UBL. There was a similar
matter fixed
for AllowanceCharge where in beta, UBL 1.0 didn't have an amount, only a
percent.

>
> There is an element "Invoice. Note. Text". One could argue that in the
absence
> of a dedicated payment discount element, this would be the spot to put a
> payment discount message such "A settlement discount of 5% applies to
Payments
> within 7 days".

Here there is a discussion point. It might be best practise (EDI colleagues
assure me)
to not have a note since it would be better to use the Settlement class and
to have
the receiving software pick up the fact that there is conditional Settlement
discount
(the class / entity includes information about the criteria - period, etc -
for discount).

However, in a case where there might be software using a subset of UBL (I'll
be
wanting to bring this up again soon) at the receiving end, then there might
be a need
for a note if the receiving software cannot process the Settlement class /
entity. But
it is clear that this would introduce an inconsistency for the sending
software. It would
have to have different rules about what to put in the note depending on
whether the
receiver's software needs it there or not. The easy answer would be to add
the note
anyway (I can imagine colleagues objecting to this). Otherwise, now here is
the crux
of the matter, there might be need to state a best practise minimum support
needed
from receiving software... I aim to bring all this up again soon. It might
be good to
ensure that at least the Settlement class is going to be read by receiving
software
before deciding not to include a note about the discount and its criteria.

All the best

Steve

>
> Then, on seeing this, the payment discount could then be applied to the
invoice.
> The issuer of the invoice still needs can reconcile the amount with the
> discount etc and the document flow will go through.
>
> Best Regards
>
> David
>
> >
> >
> >
> > > Just to explain what the three totals in LegalTotal mean:
> > >
> > > As far as I know, there are various ways that discount can be
> > > or should be added to an invoice. Firstly there is settlement
> > > discount which depends on criteria being met. Here it is not
> > > known at the time tax was allocated to the total whether or not
> > > the discount will in fact be taken. So, at least as far as I know
> > > regarding my own country's VAT tax laws, such discount is not
> > > included in the calculation of tax and is taken, if settlement terms
are
> > > met (e.g. if paid in a specified time), without affecting the tax
total
> > > of the invoice.
> > >
> > > Then, secondly, there is discount such as trade discount which IS
> > > certain at the time tax was calculated. This, depending on the type
> > > of discount and the country's tax laws, may affect the tax total and
> > > if so is usually deducted before the calculation of tax. If so, the
> > > total before discount and the total after discount but before tax are
> > > called different names. The total before discount is in UBL called
> > > the LineExtensionTotalAmount and that after discount is called
> > > the TaxExclusiveTotalAmount. The first is defined as "the total of
> > > line item extension Amount for the entire invoice, not adjusted by
> > > any payment settlement discount or taxation except adjustments
> > > which should be made before tax calculation" and the second as
> > > "the total that is to be paid for this invoice, excluding all taxes,
> > > after adjustments which should be made before tax calculation."
> > > In short, the first is usually, simply the total before discount
> > > and the second is the total after discount (and the total on which tax
> > > is calculated usually). (One thing that may complicate it is if
discount
> > > isn't, for some reason, to be included in the tax calculation.)
> > >
> > > Then the tax is calculated (on the basis of
> > > a 'TaxableTotal' or a set of line taxable totals) and then added
> > > creating the total after tax which in UBL is called
> > > 'TaxInclusiveTotalAmount'. This is what you were asking for.
> > >
> > > The same sort of thing applies at line level too but here there
> > > is just the LineExtensionAmount to worry about and the
> > > TaxableTotal. If discount is taken at line level it is just added
> > > up and deducted at documant level so there is not a line
> > > level TaxExclusiveTotalAmount and TaxInclusiveTotalAmount
> > > in UBL 1.0    Maybe they will be added in future but there
> > > has been no indication of any requirement that I know of.
> > >
> > > All the best
> > >
> > > Stephen Green
> > >
> > >
> > >
> > > ----- Original Message -----
> > > From: "Pedro Alves" <pmalves@think.pt>
> > > To: <ubl-dev@lists.oasis-open.org>
> > > Sent: Friday, May 21, 2004 7:32 PM
> > > Subject: Stupid question?
> > >
> > >
> > > >
> > > >
> > > >     This even sounds silly to me...
> > > >
> > > >
> > > >     In an invoice, where do I put the final value? including taxes,
> > > > discounts... all. The amount the buyers has to pay.
> > > >
> > > >     LegalTotal does not handle discounts...
> > > >
> > > >
> > > >     Thanks
> > > >
> > > >
> > > >
> > > > --
> > > > Pedro Miguel G. Alves       pedro.alves@compta.pt
> > > > COMPTA - Parceria e Tecnologia      www.compta.pt
> > > > Tel:   +351 21 413 46 00  Av. José Gomes Ferreira
> > > > Fax:   +351 21 413 46 09     nº 13 1495-139 ALGÉS
> >
> > --
> > Pedro Miguel G. Alves       pedro.alves@compta.pt
> > COMPTA - Parceria e Tecnologia      www.compta.pt
> > Tel:   +351 21 413 46 00  Av. José Gomes Ferreira
> > Fax:   +351 21 413 46 09     nº 13 1495-139 ALGÉS
> >
> >
>
>
>
>
> -------------------------------------------------------
>



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