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Settlement discount

jonesey10jonesey10 Just JoinedRegistered Posts: 3
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

Comments

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

    2555.9 divide by 117.5 times 3 = 65.25
  • CullenCullen Experienced Mentor Registered Posts: 592
    Aaaargh, maybe I am not quite as brilliant as I thought as I am out by 30p.
  • jonesey10jonesey10 Just Joined Registered Posts: 3
    Cullen wrote: »
    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.
  • CullenCullen Experienced Mentor 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)
  • CullenCullen Experienced Mentor 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?
  • jonesey10jonesey10 Just Joined Registered Posts: 3
    Wow, I thought it may have been straightforward, I'm sure your right, I'll have a go.
    Thanks so much for helping.
  • crispycrispy Trusted Regular SouthamptonRegistered Posts: 456
    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
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