Discount Received
Trade Discount Received
Trade discount is received from your creditors (suppliers) for cash purchases, or if your business is classified as a special classification or group by your creditors (suppliers) e.g. traders, retailers, etc.
- This discount is received at the time when you purchase items or services from
your creditors (suppliers).
- This discount is usually deducted from the purchase price at the time of sale.
Only the net cost or purchase price is reflected, and no discounts are
physically recorded as a transaction.
- This discount will reduce the purchase price of the purchases, and
consequently your gross profit will be affected.
When you receive a hand-written credit note from your creditors (suppliers),
for a specific hand-written supplier invoice, you need to check that the
discounts are specified and calculated correctly as was specified on the
original supplier invoice.
- Retail Entity - Stock Items - If you are trading as a retail entity,
purchasing stock items from your stock code file, you may enter the percentage
discount for a selected item, or you may specify a percentage overall discount
for all the transactions on an order, purchase document or stock return
document.
TurboCASH will post (update) the reduced cost or purchase price (purchase price less any discounts) to the creditor (supplier) and purchase account.
YES
NO
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