The calculation formula of discount interest and discount amount of bills receivable is: discount interest = bill maturity value × discount rate × discount period, and realized amount = bill maturity value-discount interest.

Before the drawer pays the discounted bills to the bank, the discounted bills receivable are the contingent liabilities of the enterprise. The enterprise issues bills by itself and discounts them to the bank, and the bank pays the balance after deducting the discount interest from the face value of the bills to the enterprise, which is called bill payable discount.

Extended data bill discount is the discount of bills receivable and bills payable. A way for enterprises to raise funds. Before the bill receivable expires, the enterprise will endorse the bill and submit it to the bank for discount. The bank pays the balance of the maturity value of bills to the enterprise after deducting the interest (discount) from the discount date to the maturity date calculated according to the discount rate, which is called bill receivable discount.

Discounting means that customers (ticket holders) sell unexpired bills to discount banks in order to get cash in advance. The discount of bills handled by general industrial and commercial enterprises to banks belongs to this category;

Cash discount refers to the transfer of unexpired bills purchased by banks to other commercial banks. Cash discount is generally a way for commercial banks to lend money to each other.

Re-discount refers to the behavior that the discount bank discounts the unexpired discounted bills to the People's Bank of China and obtains re-loans from the People's Bank of China by transferring the bills. Rediscount is a credit business of the central bank and a monetary policy tool used by the central bank to implement monetary policy.

References:

Baidu encyclopedia-bill discount