It would be nice if a parameter could control whether the AP/AR Discount is calculated based on an amount 'before' or 'after' tax.

Knowing that you are enhancing and integrating this function in V6.2, I just wanted to make sure you knew about this requirement as you are developping...

Comments

  • For US reporting, please consider the New York State Department of Taxation and Finance
    http://www.tax.state.ny.us/pubs_and_bulls/tg_bulletins/st/taxable_receipt.htm

    Early payment discounts
    An early payment discount is different from trade or volume discounts. When you offer an early payment discount, you still sell the goods for the established price. Customers are only allowed to reduce the amount owed to you if they pay within a specified time period; otherwise, the total amount due remains the same. The early payment discount is an optional discount that customers can take if they choose and does not represent a discount in the actual selling price of the product. The early payment discount is not subtracted from the amount of the invoice that is subject to sales tax.

    Example: Using the facts in the example above, you sell the same 10 cases of copy paper for $32 a case. However, on the invoice you state that a 10% early payment discount is available to customers who pay their invoices in full within 10 days of the date of delivery. The invoice shows the purchase price of $32 per case, and the sales tax is calculated on the $320 for the 10 cases.


    From the Canada Revenue Agency web site:
    http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/rlypymnt-eng.html
    Early-payment discounts and late-payment surcharges
    If you offer an early-payment discount on credit sales, you have to charge GST/HST on the full invoice amount even if your customer takes the discount.

  • A significantly enhanced AP/AR discount capability including the before/after tax and invoice element control is being release in v6 p21.