Posting Cash Discount 

The system posts cash discount amounts to a cash discount revenue or expense account automatically. Under the net procedure, the system takes the cash discount into account during document posting. Under all other procedures, the system posts the cash discount when you clear the open items.

When an invoice posted with the net procedure is paid, the system still clears the cash discount clearing posting created with the invoice.

If the deducted amount is less than the cash discount agreed upon because payment has been made after the payment period, the system posts the difference to an account for lost cash discount.

You must create the cash discount accounts for the automatic posting, and inform the system of the terms it is to use for posting to the accounts. Accounts are required for the following procedures:

Cash discount revenue

Cash discount expense

Cash discount clearing for the net procedure

Cash discount lost during the net procedure

You enter the accounts separately for each chart of accounts. You can further differentiate the accounts for each procedure per tax code.

When you post with the net procedure, you require a cash discount clearing account. The following example illustrates posting with the net procedure. You must manage the cash discount clearing account on an open item basis. The system clears this account automatically when you clear the invoice.

You cannot post to cash discount clearing accounts manually.

You post an invoice for USD 1,000 to a fixed asset account. To calculate the exact acquisition amount, the system calculates the cash discount amount from the invoice amount already when you post the invoice, and posts it to a cash discount clearing account.

When you post the invoice, the following accounts are posted to:

1. You post the invoice amount (USD 1,000) to the vendor account. The system posts the invoice amount less the cash discount amount (USD 970) to the fixed asset account. To clear the document, the system posts the cash discount amount of USD 30 to a cash discount clearing account.

When you clear the invoice, the system posts to the following accounts:

2. The payment program posts the net amount (USD 970) to an outgoing checks account. The system clears the open items in the vendor account and the cash discount posting in the clearing account.