Using Discounts in Floor Plan

Certain financiers allow a discount upon Payout under certain terms and conditions.  The discount can only be applied at the time of recording a payout in the stock card to which it relates.

If your floor plan arrangement includes such discounts, you must ensure an Item Code is created to account for this.  You will need to confirm with your floor plan financier whether the discount allowed attracts GST, and select the tax code of this Item appropriately.

Additionally, you’ll need to select an appropriate account for this item code, and you may find it necessary to create a new account.  You may consider Discounts a reduction of the expense of floor plan interest, in which case you might select this account into the Item Code, or you may consider Discounts a form of income in which case you may need to create an account in the Other Income area and select it into the Item Code.

Once an appropriate Item Code has been created, Floor Plan Payouts with Discounts can be recorded simply by indicating a discount applies within the Payout screen of the stock card.

Enter the amount of the discount (GST Inc) and press OK.  The amount outstanding in Accounts Payable will be the net amount of the bailment less discount.