Discount payment is a proportional interest discount on the invoice amount with payment within a certain period or during cash payment.

By the possibility of a discount deduction the suppliers want to cause their customers of paying the received commodity or service faster.

The discount payment amounts to usually 2 - 3 per cent of the invoice amount.

Example: If on a calculation under the terms of payment stands "“within 8 days less 2% discount payment, within 30 days purely net"”, then this means: with payment of the calculation within the discount payment period of 8 days 2% of the invoice amount may be taken off - as reward for fast paying. The VAT amount reduces accordingly. If one waits with the transfer longer than 8 days, then the full invoice amount is due. If the debtor leaves itself more than 30 days time, interests and possibly small fine are to be taken into account. It is to be noted that the discount payment period comes in the long run equal a short term credit. If one counts the discount deduction in the comparison at present, a very high annual interest set results - in the case of doubt one should try to always skontieren.

For enterprises it nearly always is of advantage to use the preference/advantage of a discount payment and to take up in addition even a credit.

The amount before discount deduction is the goal selling price, the amount after discount deduction is the cash sale price.

One can understand discount payment also as interest decree: The invoice amount already contains interests, which may be taken off on adherence to the discount payment period.

\ % \ mathrm {interest \ per annum} \ = \ left (\ frac {\ mathrm {goal selling price}} {\ mathrm {cash sale price}} - 1 \ right) \ times 100 \ % \ times \ frac {360} {\ mathrm {time fixed for payment} \ - \ \ mathrm {discount payment period}}

Bsp: During term of payment "“within 8 days less 2% discount payment, within 30 days"” \ % \ mathrm {interest purely net applies \ per annum} = \ left (\ frac {100} {98} - 1 \ right) \ times 100 \ % \ times \ frac {360} {30 - 8} = 33 {,} 4 \ % \ \ mathrm {per annum}

Discount payment can be understood economically as:

• Initial cost reduction or
• Credit granted by suppliers
• Interest decree

Literature

Lauer, Hermann: Condition management, terms of payment arrange optimal and intersperse, Duesseldorf 1998, ISBN 3-87881-124-1

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