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Applying vendor cash discount with VAT w/tax portion to separate GL account

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Posted on by MC-26061647-0

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Example for Vendor Discount D365: gross Invoice amount € 1.190,- incl. 19% German VAT, Agreed Cash Discount 2%

Original Invoice posting:
GL Account	Account Name	Amount Debit	Amount Credit
600930	Other general expenses	1.000,00		Example
130060	VAT (Recoverable) Germany	190,00
200000	Trade Payable - Domestic		1.190,00


Current Payment posting D365 with automatic Cash Discount:
GL Account	Account Name	Amount Debit	Amount Credit
110200	Deutsche Bank EUR 7000		1.166,20
600925	Vendor Discount Received		23,80	wrong
200000	Trade Payable - Domestic	1.190,00


Correct Payment posting with automatic Cash Discount:
GL Account	Account Name	Amount Debit	Amount Credit
110200	Deutsche Bank EUR 7000		1.166,20
600925	Vendor Discount Received		20,00	correct
130060	VAT (Recoverable) Germany		3,80	correct
200000	Trade Payable - Domestic	1.190,00

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André Arnaud de Cal... 295,304 Super User 2025 Season 1 on at

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Applying vendor cash discount with VAT w/tax portion to separate GL account

HI,

Can you tell us if you have a question? You only shared a table without further details. How can we help you?
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Ramesh Kumar 5,120 on at

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Applying vendor cash discount with VAT w/tax portion to separate GL account

In the incorrect posting, the vendor discount received account is credited with €23.80, which includes the VAT amount. This is incorrect because the cash discount should only be applied to the net invoice amount.

I am not sure how it posted. With limited access I don't have an answer. Someone from community will update.

Thanks, Ramesh

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