Discount Received

Discount as a Credit Note or negative Invoice entry:

The following maintenance should be performed:

1.  General Ledger (GL) account

create a GL account in the Other Income section e.g. 7.3000 Discount Received

2.  Cost Centre (CC)

create a CC for Discount Received in the GENERAL LEDGER cost centre bank, e.g. DISCREC and link it to the corresponding "Other Income" GL account 7.3000

Creditor invoices are posted as normal, however a credit note or negative invoice is posted for the value of the discount.  The Supplier code is the real supplier, however the Job is likely to be GENLED or the Overhead Job/Ledger for this year, e.g. OH9899 with the Cost Centre of DISCREC.  When paying the Supplier, the original invoice/s are tagged for payment together with the discount entry.

Note: If the value of Discounts received for early settlement, etc are not to be recorded, then simply crediting the Job and Cost Centre would be acceptable.  However this approach may be misleading when evaluating the real cost of construction.

It is not recommended to create a Discount Deduction in Suppliers Pay Deductions.