Purchase Entry

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47 Points Posted on 04 February 2020
Book purchase at Gross value or net value in case of cash discount provided by supplier if payment made within due date.
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On 04 February 2020 at 11:53 Report
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This discussion clarifies how to book purchase entries when suppliers offer cash discounts for early payment. It explores whether to record the purchase at its gross or net value, considering factors like GST and the timing of discount application. The consensus leans towards recording the gross value, treating the cash discount as an opportunity cost of early payment.

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banglore
1496 Points Posted on 04 February 2020
If discount is given on invoice, then at time pf booking invoice otherwise at time of payment
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On 04 February 2020 at 13:43
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47 Points Posted on 04 February 2020
@ sujith sir
at time pf booking means?

Discount is given in invoice with payment condition & GST charge after discount amount
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On 04 February 2020 at 20:53
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11 Points Posted on 05 February 2020
Cash discount means your opportunity cost of money you are paying early. We will record Gross Value because cash discount is Recorded.
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On 05 February 2020 at 10:00

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