Cash Discount Clearing
As a rule, the cash discount agreements are already defined in the purchase order. When you enter an invoice, these agreements are displayed as default values on the vendor screen in the section Payment control. However, they can be overwritten.
See also:
Entering Cash Discount Data.The cash discount amount can be posted in two ways: the amount is either used for the non-operating result or it is credited to the cost object (for example, the warehouse stock account or the cost center).
How the cash discount amount is posted depends on the document type with which the invoice is posted. In the standard system, there are two document types:
The cash discount amount is not included in the invoice posting and is credited to the G/L account "non-operating result" upon payment of the invoice.
The cash discount amount is cleared when the invoice is posted. This procedure is recommended only if the cash discount amount can be credited to the G/L account directly. In the case of postings to a stock account, the material must be valuated using the moving average price, When material has a standard price, variances such as cash discounts are posted to a separate price difference account. Therefore, as in the case of gross posting, these differences are included in the non-operating result.
When you enter an invoice you define on the initial screen whether the invoice is to be posted as a gross or net amount.
Posting as a Gross Amount Posting as a Net Amount