Line discounts on a cash purchase

What this does

A line discount reduces the price of a single item in your cash purchase. This is useful when a supplier offers a special price on a particular product or quantity. The discount is deducted from that line's subtotal before taxes and document-level discounts are applied.

Before you start

• You have the ability to create cash purchases in your Usystems permission group.
• Know the discount amount or percentage you want to apply.
• The item must already be added to the cash purchase form.

Steps

1. Open the cash purchase form. Navigate to Purchases → New Cash Purchase Open in Usystems.
2. Add the items you are purchasing in the Line Items section by selecting a product and entering a quantity.
3. Locate the item line where you want to apply the discount.
4. In the Discount field on that line (if visible), enter either a percentage (e.g., 10%) or an absolute amount (e.g., 100 AFN).
5. The system recalculates the line subtotal and the invoice total automatically.
6. Complete the rest of the cash purchase form (payment account, currency, etc.) and save.

Accounting impact

When you apply a line discount:

• The Cost of Goods Purchased (or relevant inventory account) is debited for the discounted amount, not the original price.
• The Accounts Payable (or Cash if paying immediately) is credited for the discounted total.
• No separate discount account is used; the reduction flows directly into the purchase cost.

Tips & common mistakes

• Discount vs. unit price: A line discount is separate from the item's base unit price. Use the discount field only if the supplier offered a special reduction; do not use it to enter a custom unit price.
• Order of calculation: Line discounts are applied first (reducing each line), then document-level discounts, then taxes. Plan your discounts accordingly.
• Negative discount: If you enter a negative value, the system treats it as a surcharge (price increase).
• Percentage vs. amount: Use whichever is clearer for your deal. The system accepts both.