Sales discount accounting entry
Commercial discount
Debit: accounts receivable
Loan: income from main business
Taxes payable-VAT payable (output tax)
cash discount
Sell goods on credit and confirm accounts receivable.
Debit: accounts receivable
Loan: income from main business
Taxes payable-VAT payable (output tax)
Upon receipt of funds, write off accounts receivable.
Debit: bank deposit
Financial expenses (actual cash discount amount)
Credit: accounts receivable
Sales discount
(1) If the sales discount occurs before the sales revenue is confirmed, it shall be confirmed directly according to the amount after deducting the sales discount.
Borrow: bank deposits, etc.
Loan: main business income (net amount after deducting discount)
Taxes payable-VAT payable (output tax)
Meanwhile:
Debit: main business cost
Loans: Goods in stock
(2) If the enterprise confirms the sales discount of the goods sold by sales revenue, which is not a matter after the balance sheet date, it shall offset the current sales revenue when it occurs. If the VAT tax is allowed to be deducted according to the regulations, the confirmed VAT output tax should also be deducted.
Debit: main business income
Taxes payable-VAT payable (output tax)
Loans: bank deposits, etc.
What are the financial expenses?
Financial expenses refer to the financing expenses incurred by an enterprise to raise the funds needed for production and operation, including interest expenses (minus interest income), exchange gains and losses and related handling fees, discount interest incurred in discounting commercial bills, cash discounts incurred or received by the enterprise, etc.
Interest expense refers to the net amount of interest expense (except capitalized interest) such as short-term loan interest, long-term loan interest, bill payable interest, bill discounted interest, bond payable interest, and long-term interest payable on imported equipment minus interest income from bank deposits.
Exchange loss refers to the difference between the bank's buying price and selling price and the exchange rate used for bookkeeping due to the settlement or purchase of foreign exchange from the bank, and the difference between the foreign currency ending balance converted into RMB and the original RMB at the end of each month (quarter, year).
Relevant handling fees refer to the handling fees paid for issuing bonds (except capitalization), the handling fees of issuing banks, and the handling fees for adjusting foreign exchange. , but does not include the handling fee paid for issuing shares.
The financial expenses incurred by enterprises are generally accounted for in the "financial expenses" subject, and a subsidiary ledger is set up according to the types of expenses. When the financial expenses occur, the account shall be debited, and when the ending balance is carried forward to the "profit of this year" account, it shall be credited to the account.
What's the difference between sales discount and business discount?
Sales discount refers to the sales price discount given by the enterprise because the quality of the goods sold does not meet the requirements. Sales discounts need to offset revenue, but not costs. Commercial discount refers to the price deduction given by an enterprise in order to promote the sale of goods, and the income is confirmed according to the amount after deducting commercial discount.