• Tedos
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Topic: Wrong Discount Amount in Direct Invoice

Hi all,

I'm a bit confuse on line item discount in Direct Invoice because it is giving me wrong value in 0_gl_trans for the discount gl account.

I made a Direct Invoice with 10 items having a selling price of 12.00/each so the total is 120.00, then I entered a
discount of 0.02% so now the total is 117.60 which is correct. I proceeded with the transaction and viewed the GL Postings and saw that the discount amount is 2.11, this is not correct because 120.00 * 0.02 is 2.40.

Why am I getting a different value for the discount amount in 0_gl_trans table?

Thanks.

  • Tedos
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Re: Wrong Discount Amount in Direct Invoice

Hi,

Can anyone tell me where is the line of code that does the computation for the line item discount in Direct Invoice?

Thanks.

  • joe
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Re: Wrong Discount Amount in Direct Invoice

Did you have tax included for the customer or was the item tax type different?

Joe

  • Tedos
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Re: Wrong Discount Amount in Direct Invoice

Hi Joe,

Thank you for the reply. In my setting I have tax included in the customer and tax in the item. I placed it this way because if I do not put tax in the customer the tax doesn't work during sales in Direct Invoice even there is a tax defined in the item. In our country we only charge tax on the items and not to the customer so the tax should only be placed in the item. How should I handle this scenario?


Thanks.

  • joe
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Re: Wrong Discount Amount in Direct Invoice

The deduction is calculated on the full item price without tax. Therefore the item tax is first deducted (if tax is included inprice).

/Joe

  • Tedos
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Re: Wrong Discount Amount in Direct Invoice

Then why it is not giving me a discount amount of 2.40 in 0_gl_trans table instead it is listed there as 2.11.
Can you tell me where is the line of code that computes for the line item discount?

Thanks.

  • joe
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Re: Wrong Discount Amount in Direct Invoice

There are no problems in the algorithms. Please try your experiments in the Training Co. or the demo.

If it still doesn't work, then please tell me if the customers pricelist is tax included. And which tax Group is set on the branch (does it include any tax rates). And which item tax type the item has.
(total tax). And if the item tax type is exempt for taxes.
As you see there are a lot of possible mistakes to do here as the tax system is very flexible.

/Joe

  • Tedos
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Re: Wrong Discount Amount in Direct Invoice

Hi Joe,

Thanks for getting back to me.

The customer has a tax group included which is 12%, the item type has an item type tax of 12% also. Can you please tell me how to configure it properly. We do not charge tax to our customer but only to the items.


Thanks.

  • joe
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Re: Wrong Discount Amount in Direct Invoice

Regarding your first post, your GL posting for the discount should be 2.14.
I am not sure what you have done wrong.
I don't understand why you don't charge your customer tax if you have set them to 12%.

Maybe somebody else can help here.

/Joe

10 Reply by Tedos (edited by Tedos 07/16/2013 02:17:03 am)

  • Tedos
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Re: Wrong Discount Amount in Direct Invoice

Hi Joe,

In my first post the GL posting for the discount should be 2.40 since 12% of 120.00 is 2.40.

This is how my FA is configured. Sales type 'Retail' is tax inclusive. Customer 'Walk In' has a tax group of 12%, Item sold has an item tax type of VAT which is also 12%.

The scenario.

I selected the customer 'Walk In' in direct invoice and selected the item 'Coke' (test item) with a quantity of 10 and a sell price of 12.00 each. I placed a line item discount of 2%. It gave me a Total Invoice of 117.60, this is correct here because 2% of 120 is 2.40, so 120.00 - 2.40 = 117.60.

The problem:

When I view the GL posting it is giving me a different figures on both debit and credit side of the GL transaction posting, they only totaled to 119.74 and not 120.00 (The invoice amount).

Please see attached screenshots to have a better view of what I mean.

Screenshot of the Invoice:
The Invoice

Screenshot of the GL Posting:
GL Posting

I hope I made my inquiry clear. I am not sure if there is an error in the program, I just need to know why it is giving me a total of 119.74 in the General Ledger view of the transaction instead of 120.00  which is the total invoice amount.

This is a fresh install of FA and no script modification has been done.

Thank you.

  • joe
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Re: Wrong Discount Amount in Direct Invoice

As I explained to you Before. If the tax is included in the customer setting of tax 12%, then the discount is taken AFTER the tax is deducted on the item line. So the tax is according to the item line Before decuction. After the deduction of the rest the total result with 26 cent less. This is correct for the GL posting.

There is nothing wrong with the algorithm. Please talk to an accountant about how to set this up.

/Joe

  • Tedos
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Re: Wrong Discount Amount in Direct Invoice

Thank you Joe, I understand it now.