I am encounter this problems when issue the purchase invoice.
My supplier will give me cash discount 3% for the cash payment.
For Example, if the product is $12.35, quantity is 12, total bill is $148.20, with the GST, the amount will become $157.09, then i will deduct 3% from $157.09. Final i need to pay $154.09
But when i use the format of purchase invoice and i put it 3% discount, the figure is different.
sorry, mistake. The GST 6 % of 148.20 suppose is 8.89, total is 157.09, when i discount 3% on it, the figure become 152.37
but why the purchase inv the GST shown was not tally with my supplier calculation?
i think the case is like this from the purchase invoice, the system minus 3% discount first, then only charge 6% GST.
but my supplier calculation is add on GST first, then only minus 3%.
anyway can amend this? TQ
What’s the difference ?
Put your calculation in Excel and find it out wether it’ll be the same or not.
The amount OF GST got different
pls refer above, one GST amount is 8.89, the another one is 8.63
I cant find any problem with the calculation please.
@Abeiku is right, Manager’s calculations are correct. The discount is applied to the unit price. Since you actually paid a lower price, GST is calculated on the price you paid, not the undiscounted price.
@ykfoo2323 are you looking for ways to display your cash discount in your books and on the invoice?
So what you are saying Manager is 1 cent off?
Well, let’s do the math again.
157.09 * 0.97 = 152.3773 ~= 152.38
So the difference is that your supplier didn’t round properly the amount. But there is a way around it.
Enter your purchase invoice with tax-inclusive amounts and with discount already applied (don’t use discount column), then you avoid this issue.
This entire situation could be complex, depending on laws in your tax jurisdiction. Normally, the tax authority will insist on the tax being paid on the amount of the transaction. No supplier can discount the tax owed. But a supplier can discount the price, which will lower the tax owed.
Most likely, if the supplier extends a discount to you after the sales invoice has been issued, he will need to adjust the tax as well, because he is really lowering the price on his goods.
Why do you bother with 3% discount column then? Enter how much supplier is really charging you (after discount) into Amount field and make sure Amounts are tax inclusive checkbox is ticked on purchase invoice.
This will make your purchase invoice total the same as supplier’s invoice.
Enter how much supplier is really charging you (after discount) into Amount field and make sure Amounts are tax inclusive checkbox is ticked on purchase invoice.
This will make your purchase invoice total the same as supplier’s invoice.
OK, i use 43.2-3%= 41.90 then i stick the tax inclusive button, the result coming out like this.
or maybe u can indicate me how to key in? TQ lubos
You apply 3% discount on line total. Not on unit price.
So if line total is 259.20, then discounted line total should come down to 251.42.
You can leave Qty column empty or in case of inventory items, you can divide line total by quantity and enter that as unit price.
lubosm i still doubt on it, could you pls help me fill in the figure at purchase invoice and print screen here? i still cannot find out the solution because my GST amount must be tally with the supplier invoice. If not, it will affect my account report.
