I am new at an A/P position and am not sure how to handle the discount taken for prompt payment of invoices (2/10, net 30). If the invoice is for $100 and it gets paid before the 10 days are up...what is the proper way of recording it/processing it? Accounts Payable-Debit $98, where does the $2 discount get recorded? There is no record that the prior A/P person recorded any discounts.
Share your knowledge and give me some advice.
Thank you all that respond. Jack