# Settlement discount

Registered Posts: 3 New contributor ?
Hi Y'all.
Is there a way you can work out settlement discount from just a statement?
i.e gross figure is £2555.90 for an invoice and the settlement discount was 3%
I know the answer is £65.55 but i'm buggered if I know how to get there.

Thanks

• Registered Posts: 592
Presuming the VAT is still at 17.5%:

2555.9 divide by 117.5 times 3 = 65.25
• Registered Posts: 592
Aaaargh, maybe I am not quite as brilliant as I thought as I am out by 30p.
• Registered Posts: 3 New contributor ?
Cullen wrote: »
Presuming the VAT is still at 17.5%:

2555.9 divide by 117.5 times 3 = 65.25

The settlement discount was taken off the net of the invoice then the VAT added. the original net amount for the invoice was £2185.00 less 3% SD
The original figures are as follows:
Net: £2185.00
17.5% VAT = £370.90
Invoice total = £2555.90
Settlement discount £65.55

But if all you've got is the gross figure on the statement and the fact that 3% SD can be taken, how can you work out what the original SD figure was?
It's beginning to eat away at me now.
• Registered Posts: 592
OK, I think I have it now,

2555.9 = 100x + (97x(17.5x/100))

Therefore:

2555.9 = 100x + 16.97x

Thus:

2555.9 = 116.97x

And:

2555.9/116.97 = x

Then:

3x = 3 x 2555.9/116.97 = 65.55

( Fingers crossed)
• Registered Posts: 592
Putting that into english:

£2555.90 equals all the net, (100x) plus the vat on 97%, 97x (17.5x/100)

The rest is just a little bit of old skool algebra

Does this look ok to you? Where's my Sensei?
• Registered Posts: 3 New contributor ?
Wow, I thought it may have been straightforward, I'm sure your right, I'll have a go.
Thanks so much for helping.
• Registered Posts: 465 Dedicated contributor ? ? ?
Hello,

Another way of working this out on caluculator: -

17.5 x 0.97 = 16.975

2555.90/116.975 x 16.975 = £ 370.90 (VAT)

2555.90 - 370.90 = £ 2,185.00 (Net)

Hope this helps