Discount System- % or in Amount

I have an appeal to the Manager Authority that they give a discount system in amount inline with % on Invoice. If they does so, then it will very helpful to whom who want to make discount either in % or in amount, whatever he/she choose. Thanks


If you are discounting by fixed amount (rather than percentage), then simply add another line and enter negative amount.

Thanks for your solution but I’m already using this way, just asked for the specific way. Anyway would you please tell that when I use discounting in % then why the % sign not showing in the invoice printed?

It should. Be sure your software is up to date.

How to update software version? Has there any update option in the software installed or it would be done through new installation after new download?

Just download the correct version for your operating system. from Install as you originally did, selecting along the way whether to keep both versions or replace with the new version. Your data is stored separately, so nothing will be affected. The new version will call up your existing data.

the cash discount method is net. What if discount is actually forfeited like 5/10, n/30 and the payment was made after 10 days? What entries should i make and where?

You don’t say if the payment made was with or without the discount - this will affect the adjustment method,

If you are offering the discount based on timed payment then issue the sales invoice at full value and enter the discount option in the invoice notes. If paid within discount period, process the discount as part of the Receive Money.

Only use the sales invoice discount field if its a permanent discount, not affected by payment term

In your situation, @kmca, the discount should not be shown on the invoice except as part of payment terms in the Notes field. You are not discounting the goods or services at time of invoicing. You are offering a possible discount if certain payment terms are met.

If your customer takes advantage of those terms and earns the discount, you can handle the discount then. An easy method is by journal entry, debiting an appropriate expense account (such as Discounts applied) and crediting Accounts receivable and the customer’s specific invoice. When combined with receipt of the customer’s reduced payment, the sales invoice will show as paid in full.

You may require advice on how to treat taxes. In some situations, tax amounts can be reduced to correspond to the the discount. In others, the tax authority wants its tax on the full amount originally charged, and the difference comes out of your pocket, although sometimes, it is also illegal for a merchant to pay a tax for the end user. Local expertise may be required.

Alternatively, during the Receive Money add a line with the Account = Discounts Allowed and enter the discount amount as a negative number - then everything is contained in the one transaction.

Can you please clarify, @Brucanna? As I understand your method, the discount shows up correctly in the expense account, but it is not associated with the invoice through Accounts receivable, so the invoice shows a balance due equal to the discount amount. Further, the receipt voucher shows an incorrect amount received from the customer, to be specific, the customer’s already-reduced payment further decreased by the discount.

If the Invoice is for 1000 and the payment discount is 100, therefore you receive 900 so the Receive Money is:

Line 1 - Accounts Receivable + Customer + Invoice = 1000
Line 2 - Discount allowed = -100 (note negative)

Total Receipt per cash account = 900

So obvious. The part I missed was that Line 1 was the full amount of the invoice rather than the amount remitted. With that understanding, @kmca, I agree that @Brucanna’s approach is quicker and easier.