credit notes and settlement discount

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
hi there

got our simulation tomorrow and one thing were not sure on is wether you take the settlement discount into account when crediting them back ?

someone said that they heard the tutor say no you forget that you deducted it and just work out the vat on the net that it would have been .

thanxs in advance

Foxy :)

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    Hi :D

    Confirm with your tutor before your Test!

    I would say - Only use Discounts Allowed/Received with the Full Invoice, not with Credit Notes!

    (Edit - see Lincs answer further down this thread.)

    http://forums.aat.org.uk/forums/posts/list/13695.page#67399

    I hope that I am right.

    Good Luck with it!

    :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    Hi, i am just doing the Tubney simulation in the Osbourne book and had the same problem. I cant get the link on the prvious post, so i am still unsure. I hope some one can let us know before tonight as our tutor probably won't have time to answer any questions as we are always in a rush.

    Thanks, Gem
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    http://forums.aat.org.uk/forums/posts/list/13695.page#67399

    Lincs has answered the quesion further down this thread.

    :D xx
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    hi there

    asked before the simulation and you do take settlement discount into account when doing credit notes .....just to let all know

    thanks for the help tho 8)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    How do feel that you did?

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    hi toadface ... im only half way through ...so realy dont know , i feel so far so good but then its easy to think youve done everything right and make a fatal error lol

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    I believe that everything adds to a better understanding.

    There is no deadline for passing each of these skills tests, as far as I am aware.

    Just keep trying, stretch yourself, but above all enjoy yourself...

    Have you read your other question threads?

    Jan, phunkyphantom22, et al have offered help.

    Which unit were you doing?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    Whether you take the settlement discount or not when crediting depends on whether the customer has paid the original invoice.

    1) If the customer hasn't paid the invoice, then they can't have taken the settlement discount so the credit raised matches the original invoice.

    2) If the customer has paid the invoice and took the settlment discount, you would have to deduct the discount when crediting. Otherwise you would be paying them back more than they paid you!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount

    Hang on! I'm not sure I'm getting my head around this...

    I thought it through and came to conclusion, that you would have gross on one side

    & Returns
    Payment
    Discount

    on the other.

    Payment and Discount posted at same time. ie end of month or whatever.

    Foxy18's original question was in relation to Credit Notes.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:credit notes and settlement discount
    ToadFace wrote:
    Hang on! I'm not sure I'm getting my head around this...

    I thought it through and came to conclusion, that you would have gross on one side

    & Returns
    Payment
    Discount

    on the other.

    Payment and Discount posted at same time. ie end of month or whatever.

    Foxy18's original question was in relation to Credit Notes.

    Yes I answered the question in relation to credit notes. I have posted (and other people) have explained settlement discount before. Try this one:

    http://www.aat.org.uk/forums/posts/list/13490.page

    Maybe try reading my post in the link above and then read the notes I have posted in this thread?

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