Wards Ap Lab 8 Angelfire

As Payroll accounting invoices discounts

- Circle Gazelle, good morning
- Hello, good morning. How to post an invoice with discounts, how many times have we heard this question from one of our customers Gazelle Circle is beginning to take charge of their accounts? Many times, so we will try to explain some type of discounts that may appear on invoices and accounting treatment.
The first difference to consider is whether the invoice is issued or received. Today we discuss the invoices received, ie, those purchases made by us to our suppliers and creditors. When
post an invoice received we can find a discount for early payment, volume discounts for purchases and trade discounts.
- Discount for early payment, discounts and similar are not included in the bill that granted us the suppliers for payment in cash or on certain dates.
- Rappels purchases: are discounts and the like that apply to us for having reached a certain volume of orders. These are taken directly as a decrease in stocks.
- Commercial discounts: Just minora the invoice value
We must remember that according to the PGC, "any minora discount the value of the purchase, so the value of our stock is the value of the stock minus the value of the discount.
see an example:
buy 100 units of product X to 100 € c / u, we apply a discount for early payment of 200 €, for a cash payment. The proveeor we apply a rebate of 300 € and a trade discount of 1 € for each unit.
The seat is as follows:
- On the debit side:
9900 (600) Purchase of goods
- For having:
(609) 300
Rappels on purchases (606) Discount for early shopping 200
payment (570) Fund, 11,000 euros

The trade off 1 € 100 € unit are subtracted from the amount of purchase.
In the event that this transaction would be subject to VAT, would have to calculate the amount of purchase less the three discount and then apply the VAT rate. Gazelle
In Circle we understand the complexity of some accounting issues, it still does not cease in our efforts to try to explain and clarify any doubts that may arise regarding the easiest way possible. We hope this information will be useful for your day to day.
you soon