Global discounts

Introduction

Global discounts are pre-defined discounts which are applied to all relevant invoices. They are applied at an invoice header level, rather than individual lines (which can be discounted using existing adjustment functionality). They are similar to Quantity discounts but are not subject to the revenue breaks used in that approach (and are handled in the same way from an accounting point of view).

Global discounts can be set either at client or contract level, and when generating an invoice proposal, the discounts will be calculated based on the configuration retrieved from those records. In an invoice proposal, the discounts will be calculated and deducted in the invoice line amount and the discounts amount will update in the newly created ledger posting account.

Parameter

In the matter management accounting parameter, the “Quantity discount” label has been renamed to “Invoice discount”. Note that global discounts are applied according to the configuration described above and do not use the revenue concept that is used by Quantity discounts.

Path: Matter management & accounting module >> setup >> Matter management accounting and parameters:

Discount configuration at client or contract level

Discounts can be specified at either the client or contract level. User can assign either a Quantity discount or a Global discount for the same period, but if you choose the Global discount type, it enables the user to input the discount percentage.

Path: Matter management & accounting module >> All clients >> setup >>Discount:

Functionality

In the invoice proposal, both summary and line-level discount percentages and discount fields have been incorporated. Once the invoice proposal is generated, the discount will be automatically computed. Furthermore, a new field, “Net amount,” has been introduced at both the summary and line levels. This Net amount field will calculate and display the invoice total after deducting the discount.

The Net amount value will be considered as the invoice amount and it will also be reflected in the total and invoice template. If any additional taxes are applied to the Net amount after the invoice is posted, the discount amount will be accounted for in the newly introduced posting type called “Matter-Invoice discount” under the Revenue-Labor account.

Invoice document

Once the discount has been applied to the invoice, a statement has been added to the invoice template to indicate the discount given.

Discounted transactions

Discounts given can be accounted for in a separate ledger account. This makes it easier to identify the amount of global discount given by the organisation.