Some suppliers offer incentive discounts if their customers pay their account before a specified date.
To insert a prompt payment discount onto a supplier invoice, use the Discounts Received general ledger code and insert a negative amount exclusive of GST. The Discounts Received general ledger code should be an Other Income account type and NOT zero-rated for GST.
Go to: Main menu > Suppliers module > Suppliers menu > Supplier Details > select supplier > Invoice.
In the Supplier Invoice window, type the credit note number in Invoice No.
Type the date of the credit note and your user code into Date and User.
Tab through to automatically populate Department field with the default department code.
Click the GL A/c field, and double-click the Discount Received general ledger account.
Tab through to automatically populate Description with the description of the selected general ledger account.
In the Dept field, type the code of the department to which the prompt payment discount relates, if different to the Department field above.
In the Total field, type the negative GST exclusive amount of the prompt payment discount and press Enter.
If the calculated GST amount is different to that displayed on the invoice, in the GST field, overtype the GST amount.
To clear a line from the invoice, select the line and click Clear Line.
To clear all lines from the invoice, click Clear All.
When all items on the invoice have been entered, click Save.
