“Edara” provides two flexible options for recording discounts. The first option deducts the discount amount directly from the inventory cost. For example, if the price is EGP 100 and a discount of EGP 20 is applied, the recorded cost will be EGP 80.
The second option records the discount separately in a dedicated account, while the inventory cost is recorded at the full value of EGP 100. You can choose the most suitable method for your company's operations by enabling or disabling the option to deduct discounts from purchase costs.
This article explains the necessary steps to configure this.
Deducting Discounts from Cost of Purchase
First: Enable the Setting
Go to the System module.
Open the “Integration" page.
Select Edara 2.0.
Click on "
" at the top right corner.
Select “Invoicing”.
Click on "
" next to “Create Journal Entry”.
Enable the option “Deduct Discount from Cost of Purchase”.
Note:
If the setting is enabled, Discounts will be deducted directly from the inventory cost when creating a Payable Journal Entry.
If the setting is disabled, Discounts are recorded separately in a Discount GL account, and inventory is recorded at its gross value.
Click “Save”.
Second: Create and Approve a Purchase Order
Go to the Purchasing module.
Open the “Purchase Orders” page.
Click “New”.
Add the required products and complete the purchase order details.
Click “Save”.
Click “Submit”.
Click on “⁝” next to the purchase order to be approved.
Select “Approve”.
Click on “⁝” again.
Select “Invoice”.
Add the tax rate and discount value (if applicable).
Click “Save”.
Third: Review the Journal Entry Linked to the Purchase Order
Go to the Accounting module.
Open the “Journal Entry” page.
Click “>|” to view the latest journal entry created (to ensure that the invoice code will be recorded in the Ref. doc. field of this associated entry).
The impact of the setting will be reflected as shown in the following example:
If you encounter any challenges or have any questions during these processes, you can contact our technical support team, which is ready to assist you.