Hello, I’d like to know what the genesis of the integration of 4009 & 5009 Discounts nominal codes in Quickfile.
I naively used 5009 code on a purchases invoice to record a special offer on first line of my IONOS domain fees. I tagged domain fees on 7506 Hosting Fees and IT and I realized that on reports it’s was not wise to use 2 nominal codes. Summary of Hosting fees & IT was not the reflection of real expenses.
What the real benefit of using these separate Discounts Codes ?
Are there integrated on Quickfile for a specific reason ?
There are many codes created as standard that you can use if you want to, but you don’t have to use them if you don’t need them.
4009 is in the sales section so it’d be for if you want to separate out the income you forego by offering discounts to customers, and likewise 5009 is in the purchases (i.e. cost of sales) section so it represents expenses you avoided by taking discounts from your suppliers. I used to be in retail so an example might be if I want to record the my sales and stock purchases at full un-discounted price so I can calculate my “normal” gross profit margin, to tell whether falling profits are due to me not raising my retail prices in line with supply costs or whether they’re because I’m giving out too many discounts.
For an overheads case like your domain fees, I would just put the net on 7506 and not bother to separate out the discount. But if I did want to record the discount separately I wouldn’t use 5009 because that puts the full cost and discount in different sections of the P&L (overheads for the cost, cost of sales for the discount), instead I would make a new code in the 7xxx range for the discount so as not to distort the gross profit figure.
