Sales Discount - Local

Approve

POST to GL

Settlement

APPROVE (Sales Discount - Local)

When a local sales discount is approved, the Trade debtor – control A/C's sub account's credit available will be added the discounted amount of money.

POST (Sales Discount - Local)

When a Local Sales discount is posted to GL, the following accounting entries are created.

GL Interface Type/[Account]	Account Usage	Sub-account	Currency	Dr	Cr	Notes
TRADE DEBTOR - CONTROL A/C	AR	Customer - Account	Prime	Discount
SALES DISCOUNT	Ledger	Prime	Discount

SETTLEMENT Sales Discount - Local

Once the sales discount is settled, Trade debtor – control A/C's sub account's credit available will deduct the discouted amount of money and the following accounting entries are created.

GL Interface Type/[Account]	Account Usage	Sub-account	Currency	Dr	Cr	Notes
CASH AT BANK	Bank	Prime	Discount
TRADE DEBTOR - CONTROL A/C	AR	Customer Account	Prime	Discount

Examples

Local Sales: Say, Discount=SGD5.00, Customer=CUS-000001.

1. APPROVE (Sales Discount - Local)

After approving the local sales discount, customer credit available will get SGD5 amount. And after posting the sales discount, the generated vouchers will contain:

2. POST Sales Discount - Local

GL Interface Type	Sub-account	Currency	PrimeDr	PrimeCr	BaseDr	BaseCr	Notes
STOCK IN HAND	SGD	90	90
COST OF SALES	SGD	100	100
COMMISSION PAID	SGD	(150-3)*2/100 = 2.94	2.94
SALES DISCOUNT	SGD	3	3
SALES	SGD	150	150
GST-OUTPUT TAX (Sales)	SGD	(150-3)*7/100 = 10.29	10.29
TRADE DEBTOR - CONTROL A/C	CUS-000001	SGD	(150-3)+10.29 = 157.29	157.29
COST OF SALES variance	SGD	100-90 = 10	10
TRADE CREDITORS- CONTROL A/C	SUP-000001	SGD	(150-3)*2/100 = 2.94	2.94
Totals	263.23	263.23