Many dealers are able to bulk buy equipment providing advantage of receiving a rebate from the manufacturer. i.e. Bulk buy $100,000 of equipment (let’s say 10 pieces) and are later given a $10,000 rebate. We would like to receive the machines into inventory at $9,000 per piece and have the additional $10,000 accounted for in a different fashion.
Best Practice suggestion: List the machines on the PO at the original $10,000 each. When the invoice comes, input a 10% discount on the machines. Make sure to uncheck the box to update the vendor price. Add a non-inventory line item to the invoice for the $10,000 that goes to a specific GL account for this (i.e. Rebates). This way the invoice is still the full $100,000 but the equipment shows it came in at $9000 with the discount. Then when you do receive the rebate, create a vendor credit memo for the $10,000 that goes to the same Rebate GL account used on the vendor invoice for the Rebate line item. That will make that GL account a wash but show the $10,000 in their discounts GL account you have designated under Tools / Options.
AP Invoice Entry with Disount:
GL Discounts Account set via Tools / Options / Accounts payable:
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