Table of Contents
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.
2. POST Sales Discount - Local
After posting the sales discount, the generated vouchers will contain:
| GL Interface Type | Sub-account | Currency | PrimeDr | PrimeCr | BaseDr | BaseCr | Notes |
|---|---|---|---|---|---|---|---|
| TRADE DEBTOR - CONTROL A/C | CUS-000001 | SGD | 5 | 5 | |||
| SALES DISCOUNT | SGD | 5 | 5 | ||||
| Totals | 5 | 5 |
3. SETTLEMENT Sales Discount - Local
Once the sales discount is settled, customer credit available will loss SGD5 amount, and the generated vouchers will contain:
| GL Interface Type | Sub Account | Currency | PrimeDr | PrimeCr | BaseDr | BaseCr | Notes |
|---|---|---|---|---|---|---|---|
| CASH AT BANK | SGD | 5 | 5 | ||||
| TRADE DEBTOR - CONTROL A/C | CUS-000001 | SGD | 5 | 5 | |||
| Totals | 5 | 5 |
