Andrew Dalgleish writes:
> I want to offer my customers a discount for early payment.  If I set up
> an expense account to make partial payments I end up paying (.au) GST on
> the full invoice.

When you receive a payment that properly takes a discount Accounts
Receivable should be credited for the full amount of the invoice.  Cash
should be debited for the amount paid and Sales Discounts[1] debited for
the amount of the discount.  If the sale was taxed the latter debit should
be divided appropriately between Sales Discounts and Sales Tax.

> I want the discount to apply to the pre-tax amount.


[1] Sales Discounts used to be an expense but now it seems to be a
contra-revenue account.
-- 
John Hasler 
[EMAIL PROTECTED]
Elmwood, WI USA

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