Hi All,

I need help understanding how discounts are taken in payables.

We are taking a 2% discount from a customer, and the discount needs to be applied on the total amount of the invoice, including GST. For example, if we had a $105 invoice ($100 subtotal, $5 GST), the discount should be $2.10. The discount is being calculated as $2.00 right now though - just on the subtotal amount.

The weird thing is that in the company profile it is set to include taxes in calculating the discount base. But when I go into an invoice that isnt calculating properly, the discount base is not including the tax (it's $100 in this case).

We are using AP 8.1A (070919). These invoices are getting into AP via POs 8.0 (07-May-2008).

Thanks!

In Canada you are not allowed to give/take discounts on the GST so currently your Payables appears to be set up correctly.

You can change this by editing the Company Profile and selecting the option to 'Calculate base for discounts with tax included'. The location of this option is dependent upon which version you have. For your version it is on the System Options tab.

Hi Douglas,

We are taking the discount on the GST because it isn't a rebate we're receiving, but a 2% discount on all of our prices. Really all of our prices are being reduced by 2%. I don't want to change the item's price yet though.

I do have that box checked off to calculate the base for discounts with tax included, but the discount base still shows up without tax.

Could it be something in the POs module causing this?

Thanks!

Hi,

Thanks for the additional information that the invoice is coming from PO to AP.

The discount base in PO does not include taxes. Therefore, the invoice it sends to AP uses the discount base before taxes also and this information cannot be edited in AP unless the terms are changed (blanked out).

Probably the best way to work around this is to blank out the Terms on the Totals tab in PO when the invoice is being created. This will make the discount Base field available for edit. You can increase the discount base to the total amount of the invoice including tax at this time. Then, it will be sent to AP that way.

One of the problems with this merthod is the fact that you will not get an adjustment to your GST Input Tax Credit account.

Rather than using the term discount have you considered using the total order discount in POA (on the total tab bottom left)?