We need help with how to book purchase discount in the following two situations:
- Suppliers will offer a 25% (for example) discount if we agree to take a large amount of product. We want to book this special discount as “purchase discount”. How do we do it.
- Suppliers will offer us a 50% discount on freight charges if we pay the product invoice within X days. We want to book this 50% freight discount as purchase discount. How do we do it? (We use landed cost to compute cost.)
Your suggestions are greatly appreciated.