I have a customer that regularly buys from Trade Point and has a discount card that gets them a discount of 5% of the gross value of the goods. Payment is made instantly at a till and a VAT receipt is kept and passed to me to reconcile.
I'm using Xero and at the moment I just reconcile the payment using the amount after the discount and do nothing with the discount.
My question is how should I record the discount received?
Should I enter each receipt on with the full non-discounted amount, then create a credit note for the 5% discount, then reconcile the payment?
Or is it ok to continue processing it as it?
Thanks
Replies (2)
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How does the vat work re this? Is your client getting given an invoice for £100 plus £20 vat, Gross £120, or does he get an invoice for £95 plus vat of £19, Gross £114?