Discount is given after reducing purchase tax and/or excise duty. Can we calculate it automatically ?
Yes, there are three different systems for calculation of discount in sales bill. It can be given on trade rate, billing rate or after reducing purchase tax. Further reduction in discount can be done through discount master file. Refer next question for details about discount master file. Trade rate is calculated as sales rate-taxes on purchase. e.g. product X is purchased after paying 4% C.S.T. and 6% R.S.T. is charged at the time of sales. Trade rate would be sales rate divided by 1.04. To calculate it automatically at the time of purchase bill entry, it should be set in Purchase Method. There is a question about calculation of rates, we may answer T or S as per needs. To give discount on billing rate, set the option as B for discount calculation in System Constants Screen. To directly reduce purchase tax from discount, give the reduction percentage in purchase tax type master file. In this case, you don’t need to take care of trade rate calculation. It could be a better option in mo
