Prompt Payment Discount Examples

 

 

Example 1: Advised method if customer takes settlement discount

  • On the 1 April 2015 your customer buys goods for £120 (£100 goods + £20 VAT). The invoice offers settlement discount (10% if paid within 30 days, 5% within 60 days) and is printed using the new PEG630 invoice design.

  •  The invoice is paid 25 days later (attracts 10% discount).

  •  The receipt of £108 (£90 goods + £18 VAT) is posted on account.

  •  A credit note is posted in SOP/Invoicing (£10 goods + £2 VAT).

  •  The invoice is allocated to the receipt and credit note.

  •  The statement is sent out at the end of the month using the new PEG610 design.

 

 

Example 2: Advised method if supplier offers settlement discount and issues credit note

  • On the 1 April 2015 you buy goods from your supplier for £120 (£100 goods + £20 VAT). The invoice offers settlement discount (10% if paid within 30 days, 5% within 60 days).

  • 25 days later you check which invoices need paying using the Suggested Payments Report.

  • You pay the invoice after 25 days (attracts 10% discount) using the Processing - Payments command .

  • The payment of £108 (£90 goods + £18 VAT) is posted on account, and the invoice is put on hold.

  • Supplier issues an adjusting credit note, which is posted (£10 goods + £2 VAT).

  • The invoice is taken off hold, and it is allocated to the payment and credit note.

 

 

Example 3: Advised method if supplier offers settlement discount without a credit note

  • On the 1 April 2015 you buy goods from your supplier for £120 (£100 goods + £20 VAT). The invoice offers settlement discount (10% if paid within 30 days, 5% within 60 days).

  • 25 days later you check which invoices need paying using the Suggested Payments Report.

  • You pay the invoice after 25 days (attracts 10% discount) using the Processing - Payments command.

  • The payment of £108 (£90 goods + £18 VAT) is posted on account, and the invoice is put on hold.

  • You post an adjusting credit note for (£10 goods + £2 VAT). The invoice is taken off hold, and it is allocated to the payment and credit note.

  • The statement is sent out at the end of the month using the new PEG610 design.

Are you an Opera II user? Why should you move?

 

You could see taking the next step to Opera 3 as investing in the future. At intsys, we understand how important it is to have a system that will grow with your business.

 

Taking the next step to Opera 3 couldn’t be easier, Intsys will ensure you have a smooth transition to Opera 3 with minimal disruption to your business. Plus, there’s little training required which means you’ll be seeing the benefits in no time.

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