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Early Payment Discounts – Supplier discounts – 2/10 Net 30

There are a few different ways to process early payment discounts.

  1. Credit adjustment
    • In Accounts Payable under tools select credit adjustment
    •  Enter credit memo if needed, description, date, and amounts
    • Select a expense category for early payment discount (may need to be set up under Master expense categories in the setup level under 5550).
    • Then enter supplier invoice as normal.
  2. GL Adjustment – effect materials cost
    • GL adjustment screen
    • Enter date needed
    • Select under Accounts – Liability – 2100 Accounts Payable and sub is to be the Account Payable account name.
    • Enter description for discount being entered
    • Enter a negative amount to be applied to the account for the discount taken.
    • Other side of transaction:
    • Select in Accounts – Expenses – 5150 material costs, with sub category being the service category you want the discount to apply to in the vital signs. This is negative entry as well.
    • Enter taxes if applicable as individual lines under liabilities in 2200 account.

example:
2100 Accounts Payable <50.00>
sub account “dealer name”
5150 Material Cost <50.00>

Description Early payment discount

*Note:  Enter the Discount as a Credit Adjustment. Then include the Credit Adjustment in the Payment to reduce the check amount.  They should set up a New Master Expense category “Payable Discounts” to post the Credit Adjustment to.

 


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