unit 1 & 2 additional question

unit 1 & 2 additional question

Ok, I'll give this a go because it has been bugging me all day!!! My interpretation would be that unlike trade discount which is given regularly to customers who use your services frequently, and cash settlement discounts allowed for early payment, bulk discount would be given to customers who may never have used you before, but for whom they have purchased goods in such a quantity that a discount can be given as a gesture for them spending so much with you.<BR><BR>In this case (if I am correct), I would do the invoice as per normal, deduct the amount for bulk discount just as I would if it had been trade discount, then when I entered the amounts in the ledgers I would not need to make any reference to the bulk discount allowed, I would merely enter the vat and net value of the goods to sales and vat in my general ledger, and enter the amounts into the cash book.<BR><BR>I hope this made sense, and if it is wrong........well at least I gave it an educated guess!!!!!<BR><BR>Take care<BR><BR>Tracy<BR><BR>