GP is calculating the sales discount based on the total invoice amount.
But, freight charges (account 4430 in our system) and graphics charges (accounts 4200 through 4300) are excluded from discounts. Only carton sales (account 4100) are subject to discount.
Example:
4100 Sales-Cartons $1,000.00
4300 Graphics-Prep $100.00
4430 Outside Freight $50.00
Total $1,150.00
Terms 1% 10/Net 30
GP calculated a discount of $1,150 * .01 = $11.50. but, it should only be $1000*.01 = $10.
Is there a way to exclude Freight Charges from sales discounts?
Thank you for including the example. I would call your discount a "Terms Discount" (as opposed to the Trade Discount below the Subtotal on the Sales Transaction Entry window).
Here is the Payment Terms Setup window where you can select which below-the-subtotal boxes in the Sales Transaction Entry window are included in the discount calculation:
Here are the fields that the Discount/Freight/Miscellaneous/Tax checkboxes are referring to in the Sales Transaction Entry window:
[There are similar fields in the Receivables Transaction Entry window.]
Reminder: Payment Terms are used for both customer and vendor transactions so be careful to name your Payment Terms ID to match the selections in the window.
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