I purchase supplies/product from a distributor and receive a discount for prompt payment. This is not in the form of a credit note, just a revised balance for the purchases that month, so not even attributable to a single invoice.
Any suggestions as to how I may reflect this in QuickFile?
You simply add an additional line to the invoice with a negative amount as described here:
http://community.quickfile.co.uk/t/how-to-apply-discount-to-an-invoice/295
This works for both purchase and sales invoices.
Apologies but a little confused on this one. For the prompt payment discount invoice’s do not usually show the discount calculation only the reduced VAT amount. Can I just make sure this is definitely the correct way to enter for prompt payment discount (ie early settlement discount) rather than bulk discount etc?
http://www.hmrc.gov.uk/manuals/vcasmanual/vcas5100.htm
I too offer a customer early payment discount and am a little stuck on showing the “lower value” VAT and the full invoice amount
thank you
The way I handle it is to have two lines on the invoice:
Line 1: Input the net amount that levies the correct reduced VAT and charge VAT at 20%
Line 2: Show the balance of the amount charged at 0% VAT (and note that it is settlement)
That yields the correct amounts all round!
PB
Hi BanksyBoy thank you for your post. I’m just a little unsure how this is then presented to the customer from our sales invoice. Any advise would be greatly appreciated.
OK, leave it with me and I will create a dummy invoice example.
PB
Over the course of a month I input supplier invoices on the system with the settlement discount line of a minus figure to show the correct value of in invoice. This works well if when the month is up I can pay in full and take the discount. What do I do if I am late paying and have to pay the full amount of the invoice? Do I have to go through each invoice again and remove the discount line or is there a better way to handle settlement discount?