I have a query in regard to vendor payment terms. If I have a payment term which says as below:
payment term 0024 - 10 days, 7.5% cash discount, Net due 30 days.
If I make a payment to vendor in less than 10 days I will get a discount on 7.5% on the total PO value. Is my understanding correct? And how will I make a payment to vendor (By posting MIRO for 7.5% less value) to avail the discount or is there any other process.
Thanks in advance