
Types of Cash Discount Clearing
There are two ways of posting the cash discount amounts:
If you post the gross amount of an invoice, the system will ignore the cash discount amount when you enter the invoice data. The cash discount amount is posted to a separate income account when payment is later made.
If you post the net amount of an invoice, the cash discount amount is credited directly to the account to which the costs are posted. For example, if you are posting an amount to a cost center, only the invoice amount minus the cash discount amount is posted to the cost center.
You specify the way in which cash discount is to be cleared on the initial screen in Invoice Verification in the field Document type. In the standard system, there are two document types:
RE
Gross postingRN
Net postingYou will find further information and examples on cash discount clearing in
Cash Discount Clearing.