Determining Base Amounts for Payment Discounts on Sales

Payment discounts are dependent on when an invoice is paid. They function independently of the other discounts, which are dependent on the item and/or customer.

You must decide whether payment discounts are based on the invoice amount with or without VAT.

To Determine Base Amounts for Payment Discounts on Sales:

  1. Open the General Ledger Setup window.

  2. On the General tab, place a check mark in the Pmt. Disc. Excl. VAT field, if you want payment discounts calculated from the invoice amount without VAT.

If you want payment discounts calculated from the invoice amount including VAT, there must not be a check mark in the field (you can remove it by clicking the field).

Attention

The selection you make in this field also determines how payment discounts are calculated for purchase invoices.