I have a scenario involving discount on the purchase of an Item. My invoice, as received as the supplier is as follows:
Item xxx 100
When I create an invoice in AP, I add a line with amount $100 and assign a tax of 15%
The above create a total of $115 and i add this total as header amount in the invoice.
AND in the Scheduled Payment tab at line level, I add a discount amount of $10 for the "First Discount" Info.
When I make payment for the above invoice, a pop-up appears indicating discount will be applied. But the Payment amount is $105 (Invoice header amount minus discount).
Is this the only way to treat discount in AP?
I need the payment amount to be $103.50 after applying discount.
If I understand correctly, it seems like you are manually calculating the tax and entering it to the invoice amount. If you configure your taxes in Oracle, and then enter the invoice for the actual amount, then Oracle will know the true invoice amount which is the discount basis and create the tax line according to the configurations (the way you want it). What you are doing now is adding the tax outside Apps configuration and then expecting Apps to calculate the appropriate discount. If you want to use the standard functionality, you need to set up all dependent parts of that functionality. If tax calculation is a dependency of the discount basis, which is certainly a dependency of discount payment terms, then you need to set it up properly.