Re: [SL] Early Payment Discount....

[<ma...@hu...>]

> On Thu, 2007-03-15 at 16:05 -0500, arc...@mt... wrote:
>> I have a supplier who gave me an early payment discount of 1%
>> The discount is on the items, not the freight charges or GST.
>>
>> Any idea on how best to handle this with SL 2.6.23 ?
>
> My solution...your mileage may vary.
>
> I've created a G/L account (mine is under COGS) called Discounts Earned.
> After you key the vendor invoice for the full amount, key an AP
> Transaction selecting the Discounts Earned account using a negative
> dollar amount.  Yes, you'll have two items on your check run referring
> to the same invoice number, but it works well for me.

I had the reverse issue (tracking pre-pay disounts for customers) and
solved it this way:

(1) create COA income account (in 4000 range) for discounts
(2) define a part CREDIT as service and give it that income account
(3) use that part # on invoice line item, but with negative amount.

A nice side effect is that when you run an income statement, the discounts
show up in parentheses in the income statement, which (for my case) was a
more accurate statement.

You could just as easily have it show up as an expense.  Just use a 5000
serices account in step (1) above and mark the expense account as an
inventory tracking item.

m