Entering line item purchase discounts

Hi,

Is there a better way to enter a discounted item on a purchase invoice, and have the accounting correct, other than entering the net final cost?

Example:

2   Widgets    423.65   each less 5% discount    804.94  line total. 

instead of

2   Widgets   423.65 each    5% discount             847.30

-1 Discount   42.37                                                -42.37


The vendor invoices are showing the discount as a single line item at the bottom of the invoice, so the people doing data entry are following along, entering the discount as a separate line item with a negative COGS  (I know, they're recording that they're making money buying stuff !!!) perhaps because it's easier than pulling out the calculator. 

  • 0

    You've got your answer: "because it's easier than pulling out the calculator." And of course, the way they are doing this doesn't properly record the inventory value of the items.

    In your example, the data entry clerk has to <gasp> multiply the gross unit cost by 95% to come up with the net after discount unit cost. Sorry - it would be nice if Sage50 would allow calculations on screen, but a desk calculator is almost as handy. It's the motivation, efficiency and ability of the data entry clerk that comes into play here. Not the software!

  • 0 in reply to AmyGurl

    Sage 50 has line item sales discounts, but not purchase discounts.  Just thought there might be some hidden setting...

    Hmmm.   Handier still, is... guess which other popular small business accounting package:

    So...  It's also the sovietware.

  • 0 in reply to RandyW

    Yes, that "other" software has some handy features. Much too difficult for most self-taught people to set up properly though.