Discount Accounting
What is Discount Accounting?
Discount Accounting in iVendNext helps businesses track discounts on sales and purchases—whether applied to items or full invoices. It ensures accurate financial records, making reporting and analysis easier. Whether giving discounts to customers or receiving them from suppliers, this feature keeps everything clear and correctly logged.
How to Enable Discount Accounting?
Before you can start using discount accounting in iVendNext, you need to enable the feature. Here’s how:
Navigate to Accounts Settings
Go to: Home > Accounting > Accounts Settings.
Enable Discount Accounting
Check the Enable Discount Accounting checkbox. This activates the discount accounting feature and allows you to post additional ledger entries for discounts.
Applying Discounts to Individual Items
iVendNext allows you to apply discounts to individual items in a sales or purchase invoice. Here’s how to do it:
Create a Sales or Purchase Invoice
Go to: Home > Accounting > Sales Invoice or Purchase Invoice and create a new invoice as usual.
Expand the Item Row
In the items table, expand the row for the item to which you want to apply a discount.
Enter the Discount
In the Discount and Margin section, enter the discount amount or percentage.
Enter the Discount Account
Scroll down to the Accounting Details section and enter the Discount Account. This is the account where the discount will be recorded.
Save and Submit the Invoice
Once all details are entered, click Save and then Submit to create the invoice with the discount.
Applying Additional Discounts to an Entire Invoice
In addition to discounts on individual items, iVendNext allows you to apply an Additional Discount to the entire invoice. Here’s how:
Create a Sales or Purchase Invoice
Go to: Home > Accounting > Sales Invoice or Purchase Invoice and create a new invoice as usual.
Go to the Additional Discount Section
Scroll down to the Additional Discount section of the invoice.
Enter the Additional Discount
Enter the additional discount amount or percentage.
Enter the Additional Discount Account
Specify the Additional Discount Account where the discount will be recorded.
Save and Submit the Invoice
Once all details are entered, click Save and then Submit to create the invoice with the additional discount.
Setting a Default Discount Account
To streamline the process of applying discounts, iVendNext allows you to set a Default Discount Account for individual items. This account will be automatically fetched when you create an invoice for the item. Here’s how to set it up:
Open the Item Document
Go to: Home > Inventory > Item and open the item for which you want to set a default discount account.
Go to Item Defaults
In the Sales, Purchase, Accounting Defaults section, expand the row in the Item Defaults table.
Enter the Default Discount Account
Enter the Default Discount Account for the item.
Save the Item Document
Click Save to update the item with the default discount account.
Key Benefits of Discount Accounting in iVendNext
Accurate Financial Records
Discount accounting ensures that all discounts are accurately recorded in your financial statements, providing a clear picture of your business’s financial health.
Simplified Discount Management
By allowing you to apply discounts to individual items or entire invoices, iVendNext simplifies the process of managing discounts.
Streamlined Invoicing
The ability to set default discount accounts for items reduces the time and effort required to create invoices with discounts.
Improved Reporting
With discount accounting, you can generate detailed reports that include discount information, helping you analyze the impact of discounts on your revenue and expenses.
Practical Scenarios
Scenario 1: Offering Seasonal Discounts
A retail business offers seasonal discounts on certain items to boost sales. By using discount accounting in iVendNext, the business can easily apply these discounts to individual items and ensure that they are accurately reflected in the financial records.
Scenario 2: Receiving Supplier Discounts
A manufacturing company receives discounts from suppliers for bulk purchases. By using discount accounting, the company can record these discounts in the purchase invoices and ensure that they are properly accounted for in the financial statements.
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