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