Additional Discounts on Pay

Uncategorized
1

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

2

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.

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3

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

4

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.

5

However, if you want the Customer Statement to be more transparent then add an extra entry.

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6

Thank you for the feedback @Brucanna
Exactly what i required

  • Prem
7

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

8

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.