For Invoices:


Where a Returns OUT (Early Payment Discount)  is accepted and paid, the entries into your accounts are as follows. Please note that steps 1 & 2 are fully automated.


Using an example of a 2 Invoices, totalling $3,555.00, with $250 Returns Out acceptance (Early Payment Discount) = $3,305 Net Payment.


Invoice 1 - $1,555.00 less $100 discount = $1,455.00

Invoice 2 - $2,000.00 less $150 discount = $1,850.00


Total credited to your bank account = $3,555.00 less $200 = $3,305.00 (this is the amount you will see on your bank statement)

 

Upon Invoice payment: (Part 1- 2 are automated by Parakeet)

 

  • Part 1: 

    • Invoice 1 

    • $1,555 is posted against your Invoice (1) and marked as paid

    • $1,555 is posted against your Parakeet AR Clearing (Interim) account; and

    • $100 is recorded as a 'Spend Transaction' in Xero against Parakeet AR Clearing (Interim) account; and
    • $100 is posted to your Parakeet Returns Expense account



    • Bill 2

    • $2,000 is posted against your Invoice (2) and marked as paid

    • $2,000 is posted against your Parakeet AR Clearing (Interim) account

    • $150 is recorded as a 'Spend Transaction' in Xero against Parakeet AR Clearing (Interim) account;
    • $150 is posted to your Parakeet Returns Expense account



  • Part 2:

    • $3,305 transfer now automatically occurs from Parakeet AR Interim Clearing Account to the Parakeet AR Clearing  FINAL  Account

    • Parakeet AR INTERIM account is now cleared to $0.00

    • $3,305 now sits in your Parakeet AR Final Clearing account


  • Part 3: (One Click Transfer)

    • You will now transfer the $3,305 from Parakeet AR Final Clearing Account to match  the $3,305 Receive entry your bank statements. 

    • You can see it HERE - Refer to the 3:13 minute mark of the demonstration video below