If any cash discount is applied, a corresponding proportion of the posted sales tax is also refunded. If the sales tax option is enabled for the cash discount, the applicable sales tax amount will be stored with the entries.
If the cash discount is calculated on invoice amounts including sales tax, the sales tax is automatically refunded when payment is made.
Example
The invoice net amount is EUR 100.
The sales tax is 25 percent or EUR 25.
The total invoice amount is EUR 125.
A 10 percent cash discount is granted if payment is made within 5 days.
If the parameter is selected, the cash discount is calculated as 10 percent of EUR 125 or EUR 12.50.
Note
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If this check box is not selected, the cash discount is calculated on the invoice amounts before sales tax is calculated. Different rules apply in different countries. |
