Creating discount codes

Discount codes are used to link a general ledger discount account to an invoice. The discount code determines where a payment discount is posted if a discount is taken on the invoice. Payment discounts are based on the timing of your payment. For example, a vendor may offer a three percent discount on invoices paid 30 days before the due date.
  1. Select Discount Codes.
  2. Click Create.
  3. Specify this information:
    Discount Point
    Select whether to apply the discount on the invoice to the Cost of Goods or Cost of Goods And Add On Charge.
  4. Click Save.
  5. In the Discount Code Details section, click Create.
  6. Specify this information:
    Discount Account
    Select the discount account. The discount account is where the discount amount is distributed.
    Allocation
    Select an allocation option. These options are available:
    • To Discount Code: Select this option to create a single distribution to the account on the discount code detail. This option keeps existing functionality.
    • Prorate By Account: Select this option to prorate the discount amount to each expense distribution line. You can use the General Ledger Account from the discount code detail and the rest of the dimensions from each distribution line.
    • Land To Expense: Select this option to prorate the discount amount to each expense line by using the full accounting string from each line.
  7. Click Save.