Can someone please explain me what possible entries happen when i take discount on a voucher paid before discount date. For example, If my Discount terms are 5% if paid before due date and the voucher is for $100.00, when i make the payment before due date the check printed is for $95.00 only and I want to know what happens to the rest $5? what GL is this posted to? I have a variance between my General Ledger and Aging report and the variance is the total of Discount taken in that period.
My understanding is when i make a payment the total is posted to Cash GL and reduces my Payable GL similarly if i take discount it should be posted to some other GL
Thanks for your time and replies in advance.
Vic Patel