Down Payments and Cash Discount
Generally, you do not post cash discount for down payments. Consequently, you can suppress these fields via the down payment accounts for the down payment entry screen. To do this, you enter a field status group in the master record via which the cash discount fields are suppressed. For more information on the layout of the screens, refer to the section "G/L account master data" in FI - General Ledger Accounting.
If your cash discount applies to certain down payments, you do not make any entries in the cash discount fields on the screen. The following example describes the procedure for posting cash discount with the gross procedure.
You agree on a down payment of 11,400 USD with your vendor, with 3% cash discount (USD 342). So that the payment program can post the down payment automatically, you have entered a down payment request. You have entered the cash discount percentage rate in the request.
The down payment is posted as follows:
When transferring the down payment, the down payment is cleared in the vendor account and the special G/L account. The system posts the amount (11,400 USD in the example) as an incoming payment to the vendor and reconciliation accounts. The input tax postings are canceled by an offsetting entry (1,400 USD in the example).