Re: Cash Discount Revenue and Cash Discount Expenses

Thanks Mahmoud and Mukthar for your responses,

Combining these two (Discount Expenses and Discount Revenue) will affect the tax liability (sales tax/VAT/GST) in a given accounting period. Since I believe tax on sales will be calculated after deducting the discount expenses.

The effect may be favorable or unfavorable to the business, this will depend on the net figure at the end of the accounting period. (Total Debits vs Total Credits)

However, we also have ensure it meets the local tax compliance.

I believe this combining would NOT be compliant in most cases???

Rgds