Click to enter a check mark in this field if you want the program to recalculate VAT amounts when you post payments that trigger payment discounts.
For example, if a customer receives payment discounts for a timely payment, the program will recalculate the VAT amount using the same VAT % as when you originally posted the sales invoice for this customer. The renewed calculation will be based on the invoice amount less the payment discount. Your sales VAT account will then be reduced by the difference between the original and the new VAT amount.
Before you can use this feature you must have activated it by placing a check mark in the Adjust for Payment Disc. field in the General Ledger Setup window.