Settlement Discounts

If you are granting settlement discounts, ensure Create AR / AP Discount Adjustments is Selected in GST Settings.

When you enter a discount in an AR Transaction or AP Transaction, the discount amount is transferred to the GL Discount Account set for the AR Customer Group of the Customer.

If you have selected to Create Discount Adjustments, GST will be attracted.

• For Payments GST Basis, no adjustments are required.
• For Invoice GST Basis, adjustments are shown on the GST / BAS Return automatically. GST adjustment transactions are created when the return form is Accepted, and you will then be prompted to transfer to GL. Transactions are sent to the GL Discount Accounts set in AR Settings - Integration tab and AP Settings - Integration tab.

If you have not selected to Create Discount Adjustments, you can manually enter adjustments in GST Enter Transactions. Create a transaction for the GST portion of the settlement discount.

You can use the AR Transaction Sequence or AP Transaction Sequence reports to show discounts. Select Options > Customise, then click Filter/Sort (Ctrl+F2). Add the following filters:

• TransactionType = R
• TransactionDiscount <> 0

This will list the discount transactions.