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Thread: Applying discount after invoice - Pastel

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    Applying discount after invoice - Pastel

    Hi there

    I am trying to figure out the best way to apply discount after an invoice as been updated on Pastel. Do I put through a journal to credit the discount amount (with or without vat) or a credit note?

    Thanks for your help in advance.

    Regards
    Raene

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    Platinum Member Neville Bailey's Avatar
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    I presume you are referring to trade discount rather than settlement discount.

    I think the credit note option is the better one, as you would need to debit sales and VAT.
    Neville Bailey - Pastel Accounting Consultant and Photographer
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    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

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    Hi Neville

    In this case it would be a trade discount. How would it differ in terms of a settlement discount if it were not setup on Pastel?

    Thank you
    Raene

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    Platinum Member Neville Bailey's Avatar
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    A trade discount is essentially a price adjustment, so it would effect sales.

    On the other hand, a settlement discount is a conditional discount, which is only applied at the time the payment is received, and results in a debit to an expense account called Discount Allowed.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
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    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    The invoice was issued in March and paid in April and the customer took their discount. The discount wasn't applied so there is an amount on the customers account reflecting as overdue. This amount needs to be put through as a trade discount. I am not sure how to do this using a credit note as the credit note opens inventory codes instead of a GL account. Do I apply the amounts to the individual inventory items as per the original invoice?

    I haven't worked with discounts before so I am really lost.

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    Platinum Member Neville Bailey's Avatar
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    When processing the credit note, change the line type from 4 (Item Code) to 6 (GL Code) and use the sales account. You need to apply VAT as well.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
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    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Thanks Neville, but that is the problem. It doesn't give me the option to change the line type.

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    Platinum Member Neville Bailey's Avatar
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    Then it means that your user access settings need to be changed.

    Log on with a supervisor password, and then go to Setup...Users/Passwords...Users.

    Browse to your user name and select it.

    Click on the "Process Options" button on the right.

    Under the "Customers" section, scroll down to the option "Can Process GL Lines on Documents" and tick it.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Neville, for the settlement discount that wasn't processed, do I also create a credit note but instead allocate it to the discount allowed GL account? Or is a Journal more appropriate?

  12. #10
    Platinum Member Neville Bailey's Avatar
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    A customer journal would be fine for processing settlement discounts.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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