Sales and Purchase Discounts

When Track Discounts in General Ledger is enabled, this is how the posting of account be handled.

In the Security form, Default Accounts tab > Purchases module, the Payable Discounts field will hold the Purchase Discounts, which is credit side of the Discount entries and Discount on Bills field will hold the debit side.

In Sales module, Receivable Discounts will hold the Sales Discounts, which is debit side of the Discount entries and Discount on Invoices field will hold the credit side.

Here is how the discount entries would look like on Bills.

And here is how the discount entries would look like on Invoices.

Here is how it will be shown in the following reports.  Shown also is how to counter check a report vs. other reports.

Inventory amount here is matched with Trial Balance report’s Ending Balance.

Inventory amount here is matched with Trial Balance report’s Ending Balance and Balance Sheet Detail report’s Inventory account balance.

At this point, we’ll pay the bill with discount.  Here is how the discount entry would look like on Pay Bills.  Note that it is the account set in Payable Discounts field (Default Account tab) will be used for discount.

And then receive payment from customer.  Here is how the discount entry would look like on Receive Payments.  Note that it is the account set in Receivable Discounts field (Default Account tab) will be used for discount.

Here is how it will be shown in the following reports.  Shown also is how to counter check a report vs. other reports.

Inventory amount here is matched with Trial Balance report’s Ending Balance.