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Early Payment Discounts - Supplier discounts - 2/10 Net 30

There are a few different ways to process early payment discounts.

1. Credit adjustment
- In Accounts Payable under tools select credit adjustment
- Enter credit memo if needed, description, date, and amounts
- Select a expense category for early payment discount (may need to be set up under Master expense categories in the setup level under 5550).
- Then enter supplier invoice as normal.


2. GL Adjustment - effect materials cost
- GL adjustment screen
- Enter date needed
- Select under Accounts - Liability - 2100 Accounts Payable and sub is to be the Account Payable account name.
- Enter description for discount being entered
- Enter a negitive amount to be applied to the account for the discount taken.
- Other side of transaction:
- Select in Accounts - Expenses - 5150 material costs, with sub category being the service category you want the discount to apply to in the vital signs. THis is negitive entry as well.
- Enter taxes if applicable as individual lines under liabilities in 2200 account.


example:
 2100 Accounts Payable <50.00>
    sub account "dealer name"
 5150 Material Cost <50.00>

Description Early payment discount

*Note:  Enter the Discount as a Credit Adjustment. Then include the Credit Adjustment in the Payment to reduce the check amount.  They should set up a New Master Expense category "Payable Discounts" to post the Credit Adjustment to.
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