VAT settlement discount basis
When a cash or settlement discount is available on a
sales invoice or purchase invoice, the VAT on the invoice can be calculated using one of these
methods:
- Gross of any settlement discount. When the payment is received, a VAT adjustment is made only if a discount was taken.
- Gross of any settlement discount. When the payment is received, no VAT adjustment is made.
- Net of any settlement discount. When the payment is received, no VAT adjustment is made.
How Infor meets this requirement
In the Tax Codes form, you can specify whether to include certain discounts in the tax calculation.