• From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Topic: payment discount

In 2009 Joe wrote:

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Due to various rules on how to calculate the percent I will demonstrate how it works:

Customer A has marked 2.5% for prompt payment discount. We issue an invoice on $125.
You get payment from your customer A. A field indicates that customer A has prompt payment discounts on 2.5% (only informative field). You decide if  this is a prompt payment and then it is up to you to split the fysical payment and the discount field (due to various rules on how to calculate ev. tax). If you want full 2.5% on $125 and you got $121,87 from Customer A you enter that in the first field and the discount $3,13 in the second field.
Now you process the payment and if you continue to immediate allocation you will see that everything end up right-

/Joe
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Which modul did Joe described: 'customer payments' or 'allocate customer payments'?
And what about tax, if discount was given? I think, it should be, if not must be reduced.
Am i wrong?

barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,106

Re: payment discount

If this is of importance to you, you can do a manuel journal entry for this. This is mostly of minor values and your invoice still have the values as indicating on the invoice.

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: payment discount

I see...
I wonder, why this is not a standard feature.
Here almost 80% of the people make use of discount. You simply can't save more. wink

Best regards,
barney

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: payment discount

Hi Joe,

how to make a manual entry?

And: If I have to do it the manual way, what is the 'Prompt Payment Discount Account' in the customer-branch for?

Beste regards,
barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,106

Re: payment discount

This was only related to the Tax on the Invoice. You will have to credit the appropriate taxes included in the discount amount. This is often very minor and not normally taken care of. But if you will you can do this. Please use the memo field to indecate the Invoice no.

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: payment discount

Which is the program / module for doing manual entry?
barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,106

Re: payment discount

Ah, I was referring to Journal Entry in Bank and General Ledger tab.

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: payment discount

Ah yes.
And do I have do add two records?
One for tax account and one for discount account?
Or can i handle this with one action?
barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,106

Re: payment discount

Yes you can handle these transactions in one Journal extry.

/Joe