Monday, 16 October 2006 Andrew Settlement discounts are mostly best handled as a negative adjustment (ie reduction) to the sale price, rather than as an expense. If you treat the discount as an expense, is there GST "paid" on this expense ? You risk overstating both your GST collected, and GST paid, (by the same amount). Also, have a look at 29-75 of the GST Act, and be horrified to see that you're supposed to issue an "Adjustment Note" each time an original Tax Invoice is revised. See also Tax Ruling GSTR 2000/1 for the specific details of what your Adjustment Notes must contain. IMHO, its best to issue a "Credit Note" (aka "Adjustment Note"), in the usual way. Whether you actually send the note to your customers is another matter, but refer above. The only downside to this approach is that your accounts might not easily report the true costs to your business of giving settlement discounts. Cheers David J
> I want to offer my customers a discount for early payment. > > If I set up an expense account to make partial payments > I end up paying (.au) GST on the full invoice. > > I want the discount to apply to the pre-tax amount. > > Any suggestions? > > Regards, > Andrew Dalgleish > ------------------------------------------------------------------------- Using Tomcat but need to do more? Need to support web services, security? Get stuff done quickly with pre-integrated technology to make your job easier Download IBM WebSphere Application Server v.1.0.1 based on Apache Geronimo http://sel.as-us.falkag.net/sel?cmd=lnk&kid=120709&bid=263057&dat=121642 _______________________________________________ sql-ledger-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/sql-ledger-users
