Defining 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 3% discount on invoices paid 30 days before the due date. This procedure describes the process for defining a discount code.

Define a discount code

Access Discount Code (AP05.7).
Optional. Click the Filter button to limit the codes that display.
Specify this information:

Code

Specify a discount code to default a general ledger discount account to an invoice.

Company

Select a valid General Ledger company.

Accounting Unit

Select a general ledger discount accounting unit for the discount code.

Account

Select a general ledger discount account for the discount code.

Discount Point

Select whether you want the discount applied to the Cost of Goods only (Cost), or the Cost of Goods plus the AOC amount on the Accounts Payable invoice (Total).