Set up a discount account in General Ledger

If you don’t have a General Ledger account created specifically for discounts, you’ll need to set up an account. Discuss with your controller, accountant, or Sage Consultant about which accounts to use.

Setup Discount settings

1. In Accounts Payable, from the File menu, select Company Settings, AP Settings.
2. Click Invoice Settings.
3. In the Discount usage section, select Invoice level or Distribution level as appropriate. This determines if you enter the discount amount at the invoice level or individually on each distribution.
   • The discount won’t prefill when you set the Distribution level unless you enable the Tax Usage feature.
   • Set the Discount usage to Invoice level for Service Management (SM) or Purchasing (PO) invoices with discounts.
4. In the Calculate discount and payment dates based on section, select either Invoice Date or Date Received. The Discount Date on the invoice calculates from whichever date you select plus the vendor Discount Days.
5. Click OK to exit Invoice Settings.
6. Click GL Entry Settings.
7. In the Discount account field, enter the account to use for discounts.
   • If your account format includes a prefix, you’ll enter the base account here. It combines this account with the prefix on the distribution expense account.
   • It credits this account if you take a discount when you pay the invoice.
   • If you’re using the Control Account Types, use an Other Control Acct or a non-control account.
8. Click OK to exit GL Entry Settings.
9. Click OK to exit AP Settings.

Setup Vendor default discount terms

These default settings will calculate the Discount date and Discount amount to prefill on the invoice during invoice entry. You can change the settings.

1. AP Setup, Vendors.
2. Select the vendor.
3. Select the Terms and Defaults tab.
4. Enter the Discount percent. If the discount is 2.5%, enter as 2.500.
5. Enter the Discount days. Sage adds this number of days to the Invoice date or Date Received to calculate the Discount Date. This is the date you must pay the invoice by to receive the discount.
6. Click Save.
7. Repeat steps 2-6 for any additional vendors.
8. Click Close when finished.

Entering Discounts on the invoices

When you enter a new invoice, the Discount Date and Discount amount will prefill according to the vendor's discount defaults. You can change the date and amount that prefill if needed.

If you need to enter or change the Discount Date or Discount amount on an existing unpaid invoice, use Change Invoices.

The discount will apply when you pay the invoice if the Check date/Payment date is on or before the Discount Date. If the Discount Date is blank but you enter a Discount amount, it takes the discount regardless of the check date when you pay the invoice.

How do I set up the discount date to be a specific day of the month in Accounts Payable?