Settlement discount
jonesey10
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
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
0
Comments

Presuming the VAT is still at 17.5%:
2555.9 divide by 117.5 times 3 = 65.250 
Aaaargh, maybe I am not quite as brilliant as I thought as I am out by 30p.0

Presuming the VAT is still at 17.5%:
2555.9 divide by 117.5 times 3 = 65.25
But that's not the answer, the answer is 65.55.
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.0 
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)0 
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?0 
Wow, I thought it may have been straightforward, I'm sure your right, I'll have a go.
Thanks so much for helping.0 
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 helps0
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