Invoice discounts and surcharges

When invoicing, you can grant discounts in various ways.

Description

Profit calculates the line discounts in the order process. Profit calculates the invoice discount on (a part of) the invoice. This also applies to invoice surcharges.

Three types of discounts are available at the invoice level:

• Invoice discount

  Invoice discount is calculated on the entire invoice amount. You can set the invoice discount for each customer.

• Payment discount

  Payment discount is an invoice discount which companies (sometimes) offer for fast payment. This 'discount' is given on the gross amount so that VAT must in fact be paid on the discount itself. This is typically a percentage in case of payment within a certain period of time.

• Payment discount using the VAT calculation basis (Belgium)

  In this case, no VAT is calculated on the payment discount. To correctly journalise the VAT calculation basis required for the VAT declaration you must use an additional ledger account that you set up for the integration type.

• Credit restriction

  Credit restriction is a negative discount to bear the costs of the credit period. If the sales contact pays on time, he can deduct the surcharge. Credit restriction is something different from payment discount. You use credit restriction to make customers pay quickly. This will benefit your cash flow, and at the same time save you time and effort otherwise spent on collecting payments. There is no legal obligation to actually pay the credit restriction, even if payment is made after the due date. Credit restriction is only invoked to limit the costs involved in invoice collections (interest, etc.).

Procedure

• Configure the invoice discount

  For each integration type, you configure the use of the invoice discount.

• Configure the payment discount

  You can use a payment discount.

• Configure a payment discount using the VAT calculation basis

  You must set Betalingskorting via grondslag BTW if you want Profit to first subtract the payment discount from the calculation basis for VAT calculation purposes and then add it back to the invoice total. When the entry is journalised Profit generates and additional journal entry line in order to record the calculation basis for the VAT levy for the VAT declaration.

• Configure the credit restriction

  You can use a credit restriction.

Also see

• Enter credit restrictions and payment discounts