Discount on A/P invoice

[Former Member]

experts,

How can we determine what account being use when we have a discount on AP invoice

[anna_shao]

I will give you an example of AP invoice and its Journal Entry as following for your reference.

AP invoice not based on GRPO :

Total before discount: 500$

Discount on header: 10% (50$)

Total after discount: 450$

17% Tax: 76.5$

Total Payment Due(including tax): 526.5$

The Journal Entry would be:

Credit - Accounts payable on Vendor 526.5$

Debit - Tax account 76.5$

Inventory account 450$

There are no discount account used.

[former_member583013]

Toto,

Any discounts given on marketing documents do not post to any G/L Account. They are simply subtracted from the Total and the Net amount gets posted.

Only discounts given on Incoming payment gets posted to the G/L Account.

Suda

[anna_shao]

Hi, Toto

What kind of discount do you mean?

If a discount on AP invoice header or row level, such discount won't be posted in Journal Enty. Thus there no need to define an account for it.

Would you like to give us more details about your senario?