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jcnixon
09-29-2004, 09:17 AM
Ok, my non-accountant brain is confused. When we invoice our customer, we offer and early pay discount. So if the customer pays within terms on say a $1,000 invoice, they are allowed a 2% discount, which would be $20.00. Does that not become an expense to us? Instead of receiving the $1,000 as invoiced, we are now receiving $980, so isn't the $20 discount and expense ( I didn't receive the $20, it cost me the $20)? If I read the help file in PT correctly, it says it is an income. To me the income would be on a discount I take on an invoice I owe a vendor, because the item as billed is actually costing me less, hence additional income. Am I on the right track?

Thanks,
Jan

kimber0405
10-08-2004, 07:53 AM
the discount you take on a vendor and the discount taken by a customer should show up in the same gl but offset by debit vs credit. make certain one is showing up debit, the other as credit and it all works out the same on the bottom line.