Hi I am wondering what is the correct way to manage discounts I get from Vendors. They are flat rate discounts which vary from product to product.
I can't journal the discounts into an expense account as I do with customers, so what is the correct way to deal with this please. Thanks in advance for any help... Cheers Ric
Thank you for your inquiry.
Typically the vendor discounts are entered when invoiced. So, you would simply input the vendor invoice into your accounts payable with the discount terms included. Then the discount would automatically be recorded when paying within the discounted period.