Hi
Our customers get a 40 Day Credit and a 25% discount on all products sold, and when the customer makes a cash payment OTC we give them an additional discount of 2%. Manager allows us to offer the 25% when raising a sales invoice but on accounts receivable we do not have the liberty to give the additional 2%, can some advice how we could achieve this using manager?
Thank in advance
Prem
When you do the Receive Money the first line would be the normal Accts Rec entry so the Invoice is fully paid then add a line, use an account called “Discounts” and enter the amount as a negative number.
Thankyou for the swift reply @Brucanna
but when i generate a customer transaction statement there is no trace of how much the customer actually paid.
it simply shows the actual amount of invoice (before 2% discount)
this kind of complicates the whole transaction. please advice
Thankyou
Prem
The customer actually pays 100% of the invoice, they don’t pay 98% of the invoice and that’s what the transaction statement shows - no balance outstanding.
Your OTC discount is a separate financial inducement which is completely separate from the Sales Invoice.
Hi @Brucanna
we have a tiny problem in balancing the discounts in this method, the accounts receivables account has the balance added to the respective account as well,
example: if we are receiving the $98 to our cash account, this method credits the entire $100 which is
in-accurate as we have actually received only $98 USD.
Please advice
Accounts Receivable is cleared by the combination of cash received and discount. This corresponds to income in the full amount invoiced and offsetting expense of the discount.