In order to attract customers and increase sales volume, merchants usually adopt the sales strategy of sales discounts. When an enterprise adopts sales discounts to promote goods, how should it make accounting entries?
Accounting treatment of sales discount
Business discount
Debit: accounts receivable
Credit: main business income
Tax payable - VAT payable (output tax)
The commercial discount occurs at the time of sale and does not constitute a part of the final transaction price. Therefore, the amount of revenue recognized from selling goods should be the amount after deducting the commercial discount.
Cash discount
Sales of goods on credit and recognition of accounts receivable
Debit: accounts receivable
Credit: main business income
Tax payable - VAT payable (output tax)
Receipts, write off accounts receivable
Debit: bank deposit
Financial expenses (actual cash discount amount)
Credit: accounts receivable
Sales Allowance
(1) If the sales allowance occurs before the sales revenue is recognized, it shall be directly recognized at the amount after deducting the sales allowance when the sales revenue is recognized.
Debit: bank deposit, etc
Credit: main business income (net amount after deduction of allowance)
Tax payable - VAT payable (output tax)
At the same time:
Debit: main business cost
Credit: inventory goods
(2) If a sales allowance occurs to the goods sold for which the sales revenue has been recognized, and it is not an event after the balance sheet date, the current sales revenue shall be offset when it occurs. If the VAT amount is allowed to be deducted according to regulations, the recognized VAT output tax amount shall also be offset.
Basic accounting treatment:
Debit: main business income
Tax payable - VAT payable (output tax)
Credit: bank deposit, etc
How to deal with inventory purchase cash discount?
1. Commercial discount refers to the discount given to the commodity prices listed in the commodity price list according to different sales targets such as retail, wholesale and special distribution.
It should be noted that commercial discounts are generally expressed in percentage, such as 5%, 10%, 15%, etc.
2. Cash discount refers to the discount given by enterprises to customers in order to encourage them to repay the payment for goods at an early date within a certain period of time.
Cash discount is usually expressed as "2/10, 1/20, n/30", etc.
The entry value of accounts receivable shall regard the actual selling price (i.e. total price) before deducting the cash discount as the entry value of accounts receivable, and regard the actual cash discount as the financial expenses incurred by the selling enterprise to recover the funds as soon as possible (recorded in the financial expenses when the cash discount actually occurs). That is, the possible cash discount will not be deducted from the accounts receivable, and the cash discount will not affect the entry value of the accounts receivable. The tax law also requires that VAT be calculated in full. The cash discount is directly included in the "financial expenses" as financial expenses when it actually occurs.
Accounting entries for sales discounts
Accounting entry Sales discount: trade discount, debit: accounts receivable, credit: main business income, tax payable - added VAT (output tax). The trade discount occurs at the time of sale and does not form part of the final transaction price. Therefore, the amount of revenue from the sale of goods should be the amount after deducting the trade discount. Cash discount, debit: bank deposit, financial expenses (actual cash discount), credit: accounts receivable.
Development materials
Sales discount is a kind of price preference given by the enterprise to the buyer, so that the goods can be sold as soon as possible and the sales payment can be recovered as soon as possible under the conditions of credit sales and commercial credit. Sales discount is divided into commercial discount and cash discount. Commercial discount refers to that enterprises issue invoices according to the indicated retail price of goods, and then provide certain discounts for the wholesale and retail links in the circulation field on this basis. According to business practice, the commercial discount is directly deducted from the price list price. The payment payable by the buyer to the seller is calculated based on the sales price after deducting the trade discount, that is, the price after the trade discount is calculated and reflects the seller's sales revenue.
When the sales allowance occurs, if the allowance occurs before the sales revenue recognizes the sales revenue, it shall be recognized directly after deducting the sales allowance after the sales revenue recognizes the sales revenue. If the sales revenue is not the sales revenue after the balance sheet date, the current sales revenue shall be offset when it occurs, and the entries are as follows:
(1) When selling:
Debit: bank deposit
Loan: main business income
Tax payable - VAT payable (output tax)
(2) When the sales allowance is incurred:
Debit: main business income
Tax payable - VAT payable (output tax)
Loan: bank deposit
Cash discount is the price discount enjoyed by enterprises to attract customers to pay in advance. The higher the cash discount, the higher the customer pays in advance, but it will reduce the profit of the enterprise. Credit term refers to the payment demand put forward by enterprises to encourage customers to pay as soon as possible, including credit period, cash discount and discount period.
Sales allowance refers to the allowance given by an enterprise to the sales price due to non-compliance with the quality of the goods sold. After the enterprise sells the goods to the buyer, if the buyer finds that the goods do not meet the requirements in terms of quality and specifications, it may require the seller to provide a certain concession at a price.
I hope I can help you.
What is the accounting entry when the sales allowance occurs?
Sales Allowance Accounting Entry:
(1) If the sales allowance occurs before the sales revenue is recognized, it shall be directly recognized at the amount after deducting the sales allowance when the sales revenue is recognized. Basic accounting treatment: Debit: bank deposit, etc. Credit: main business income (net amount after discount) Tax payable - VAT payable (output tax) At the same time: Debit: main business cost Credit: inventory goods
(2) If a sales allowance occurs to the goods sold for which the sales revenue has been recognized, and it is not an event after the balance sheet date, the current sales revenue shall be offset when it occurs. If the VAT amount is allowed to be deducted according to regulations, the recognized VAT output tax amount shall also be offset.
In case of sales discount or allowance, the seller shall write down the main business income, that is, enter it in the account according to the amount after discount, and declare tax. If the buyer enjoys the sales allowance, the inventory cost shall be written down and recorded according to the amount after the allowance.
Development materials:
Sales allowance refers to the allowance given by an enterprise on the selling price because the quality of the goods sold does not meet the requirements. After the enterprise sells the goods to the buyer, if the buyer finds that the goods do not meet the requirements in terms of quality, specifications, etc., the buyer may require the seller to give a certain price concession. If the sales allowance occurs before the sales revenue is recognized, it shall be directly recognized at the amount after deducting the sales allowance when the sales revenue is recognized; If there is sales allowance for the goods sold whose sales revenue has been recognized and it is not an event after the balance sheet date, the current sales revenue shall be offset when it occurs. If the VAT amount is allowed to be deducted according to regulations, the recognized payable VAT output tax shall also be offset.
It refers to that the enterprise has removed the odd due to the unqualified quality of the goods sold or the large amount of the order (such as:
1000023.00 yuan) and other reasons.
When sales discounts actually occur, the sales revenue of the enterprise will be offset.
The best difference between allowance and discount is whether to issue an invoice.
For example, if A sells 1000 yuan (excluding tax) of goods to B, the invoice is 1000+13% * 1000=1130 yuan, and 13% * 1000=130 yuan
B thinks that A's goods are not satisfactory and proposes a discount of 10%. Then the red ink invoice issued is a discount invoice, including 100+13% * 100=113 yuan and 13% * 100=13 yuan. A will charge B113 yuan less, and 13 yuan is value-added tax.
