Early Settlement Discounts

[andrewc]

We are using Sage 50 Accounts v16.0.17.0156 CB on Windows 7

Recently the company I work for has started offering early settlement discounts of 15% to our customers.

As I understand it we should be raising our invoices showing the VAT calculated on the discounted amount and whether they take the discount or not, they still pay the discounted VAT? We are on cash accounting by the way.

Some of our customers are on £100 per month and some are on £200 per month. Usually this would mean the gross is either £120 or £240. However it should now be shown as:

Net £100 |Net £200
VAT £17 |VAT £34
Gross £117 |Gross £234

I've tried raising invoices on Sage but it won't let me overwrite the VAT box, it just automatically calculates VAT on £200/£100 and comes up with £240/£120.

I tried going into a customer account to put 15% discount in the credit control tab but it will only allow me to put a figure, not a percentage. I need a percentage really because different customers have different amounts and in some cases the amounts change.

Also bear in mind that I cannot use the Batch invoice function because I need to print the invoices out.

On top of this i've already done one months invoicing incorrectly (as in at £120/£240) and have been applying discounts using the discounts column in the customer receipts box. The whole discount has come off the net and is it is still showing £20/£40 VAT. I think I can adjust this in the corrections page but for the customers who haven't taken the discount I believe I need to create credit notes? what nominal code do I put the credits to?

I am now lost and really frustrated, if anyone can help I would greatly appreciate it.

[leyburnsolutions]

To set a customer for a Settlement Discount, you enter the percentage you want to use in the Sett. Discount field on the Credit Control tab of the Customer Record - this will then be applied to the VAT Amount when raising invoices.

To amend the VAT amount, you need to go to Settings -> Company Preferences -> VAT and select the 'Item VAT Amendable' option.

John

[andrewc]

feeling rather silly now, thanks for that. Does anybody know if there is a way that I can change everyones credit control arrangements without actually going into everyone's individual accounts? As in can I do a global change?

[brucedenney]

You can use Batch Change to change a number of accounts at once.