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Hi guys i am bit confused i know you guys said to calculate tax as if the customer would take take the settlement discount. So you take the discounted price already then you calculate tax. But why in the example you guys gave us on the edx. Posting the entry on the ledgers you place the over all net price without the discount and you calculated tax without the discount on the net price?
We always enter the full amount without the discount because until the customer pays we do not know whether or not they will be entitled to the discount. If they are entitled to it then it is when they pay that we enter the discount allowed.
The sales tax rule is that the tax is calculated after subtracting the discount, and this is the case whether or not they do actually get the discount.
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