Common Elements Used in Payables Accounting Entries

Field or Control

Description

Discount

The discount transaction accounts for discounts that are taken (or not taken) at the time of payment. The two discount distribution account types are mutually exclusive. The setting of the Account At field on the General Controls page determines which discount distribution account type is used: Gross: The gross amount of vouchers is used as the basis for accounting. Any discounts taken are recognized as discounts earned. Discounts not taken are not reflected. Net: The net amount of vouchers is used as the basis for accounting. Any discounts that you lose are recognized as discounts lost. Discounts are charged depending on the option selected in the Discount Allocation Policy group box on the General Controls page. Options include: Allocate Discounts, Prorate Discounts, and Expenses Discounts. The standard transaction accounts for the liability, the expense distribution, and the cash payment.