Cash discount accounting

You can give the Credit notes after received the payment becuase you dont know vendor when give the payment. So in this case you just pass the credit notes entries in the books of vendor against proper payment of Invoices.. Thanks

As I understand, you cannot reverse VAT liability for cash discounts offered. It can be done in case of trade discounts.

For your purpose, you need to raise invoice for the full amount and wherever cash discount benefit is availed by your clients, you can raise credit note for the difference and close the account.

dear friend,

you give full amount invoice and party give payment on time you generate a credit note of 2% against your party

Hi Snehal,

All the above sugeestion are in line.But I would suggest that you must consult a professional and ask all your concern as you must focus on bussiness and a Professional will focus on ur issues.Sso u may contact a professioanl for this and all further doubts.

Thanks!