# Discount on purchase invoice
**URL:** https://forum.manager.io/t/discount-on-purchase-invoice/5691
**Category:** Uncategorized
**Created:** [May 6, 2016, 5:22pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691 "2016-05-06T17:22:30Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 6, 2016, 5:22pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/1 "2016-05-06T17:22:30Z")
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.
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 6, 2016, 5:26pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/2 "2016-05-06T17:26:16Z")
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
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 6, 2016, 5:27pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/3 "2016-05-06T17:27:02Z")
but why the purchase inv the GST shown was not tally with my supplier calculation?
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 6, 2016, 5:29pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/4 "2016-05-06T17:29:18Z")
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
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### Author:  [@rully\_p](https://forum.manager.io/u/rully_p)
#### Post date: [May 6, 2016, 7:29pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/5 "2016-05-06T19:29:07Z")
What’s the difference ?
Put your calculation in Excel and find it out wether it’ll be the same or not.
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 6, 2016, 7:43pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/6 "2016-05-06T19:43:24Z")
The amount OF GST got different
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 6, 2016, 7:44pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/7 "2016-05-06T19:44:20Z")
pls refer above, one GST amount is 8.89, the another one is 8.63
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### Author:  [@Abeiku](https://forum.manager.io/u/Abeiku)
#### Post date: [May 6, 2016, 8:10pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/8 "2016-05-06T20:10:27Z")
I cant find any problem with the calculation please.
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### Author:  [@Tut](https://forum.manager.io/u/Tut)
#### Post date: [May 6, 2016, 8:46pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/9 "2016-05-06T20:46:27Z")
@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.
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### Author:  [@Abeiku](https://forum.manager.io/u/Abeiku)
#### Post date: [May 6, 2016, 9:03pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/10 "2016-05-06T21:03:23Z")
@ykfoo2323 are you looking for ways to display your cash discount in your books and on the invoice?
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### Author:  [@lubos](https://forum.manager.io/u/lubos)
#### Post date: [May 7, 2016, 1:50am UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/11 "2016-05-07T01:50:38Z")
> [@ykfoo2323](#):
>
> 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
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.
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 7, 2016, 4:45pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/12 "2016-05-07T16:45:16Z")
1. Supplier will give me 3% discount and the said instruct me to deduct 3% direct from 725.04.
1. when i key in 3% discount, the GST amount is not same.
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### Author:  [@Tut](https://forum.manager.io/u/Tut)
#### Post date: [May 7, 2016, 7:25pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/13 "2016-05-07T19:25:35Z")
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.
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### Author:  [@lubos](https://forum.manager.io/u/lubos)
#### Post date: [May 7, 2016, 10:10pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/14 "2016-05-07T22:10:42Z")
> [@ykfoo2323](#):
>
> when i key in 3% discount, the GST amount is not same.
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.
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### Author:  [@lubos](https://forum.manager.io/u/lubos)
#### Post date: [May 7, 2016, 11:43pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/15 "2016-05-07T23:43:17Z")
> [@Handling discrepancy when recording purchase invoices](https://forum.manager.io/t/handling-discrepancy-when-recording-purchase-invoices/5700):
>
> When a supplier sends you a purchase invoice, typically you would enter the invoice in Manager exactly the same as it appears on the supplier’s invoice. For example purchasing 2 items for $100 each would be recorded as follows: A problem may arise when you are charged tax or when a discount is applied to the purchase invoice. There are two methods of calculating taxes and discounts. Calculate tax and discount on each line item individually, round the amounts, then total them. Total …
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 8, 2016, 5:06am UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/16 "2016-05-08T05:06:26Z")
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.
Uploading…
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 8, 2016, 5:06am UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/17 "2016-05-08T05:06:48Z")
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 8, 2016, 5:07am UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/18 "2016-05-08T05:07:10Z")
or maybe u can indicate me how to key in? TQ lubos
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### Author:  [@lubos](https://forum.manager.io/u/lubos)
#### Post date: [May 8, 2016, 5:22am UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/19 "2016-05-08T05:22:40Z")
> [@ykfoo2323](#):
>
> OK, i use 43.2-3%= 41.90 then i stick the tax inclusive button, the result coming out like this.
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.
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### Author:  [@ykfoo2323](https://forum.manager.io/u/ykfoo2323)
#### Post date: [May 8, 2016, 4:23pm UTC](https://forum.manager.io/t/discount-on-purchase-invoice/5691/20 "2016-05-08T16:23:44Z")
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.
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