Hi, I am also confused by this. Lets say an invoice for £120 (£100 + £20 vat) was offered with a 3% settlement discount, does it mean we (the bookkeeper) will put it as £97 sales +£19.40 VAT (£116.40).
Then if they don’t take the discount will the VAT will still be £19.40 and net £100 (£119.40)?
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