How to use Discounts for A/P

Discounts for A/P

Discounts never show on Operating Statements to the Investors. When entering invoices, you are asked for a discount amount and a discount date. If when paying the invoice, your specified pay date is within range of the discount date, the discount will be taken for you, automatically. Otherwise, to take a discount, when paying invoices, you must call up individually the invoices for which you want to take a discount, apply the discount amount then pay the remainder. Discounts always result in a credit to Discount Income (general ledger number 44444) and a debit to Accounts Payable.