Use case 22b: Cash discount (VAT on debit)
Cash discounts on goods or services with VAT on debits, where a credit note is required to adjust VAT already collected at invoice issuance.
Description
Apply this use case for cash discounts on goods or services with VAT on debits. Because VAT was collected at invoice issuance, a credit note is required when the buyer takes the discount.
Unlike use case 22a, a credit note is required to adjust VAT already collected.
Business and tax context
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Applies to goods (B1 or B2) or services with the debit option.
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VAT is collected at invoice issuance (on the full amount).
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Issue a credit note to adjust VAT when the buyer takes the discount.
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Both the seller and the buyer adjust VAT based on the credit note.
Key data requirements
The following tables list the invoice fields and credit note fields for this use case.
Invoice fields:
| Field ID | Description | Value |
|---|---|---|
| BT-21 | Note subject code | AAB (Discount terms) |
| BT-22 | Note text | Discount terms description |
| BT-23 | Billing framework | B1/B2 or S1 with debit |
Credit note fields (when the discount is taken):
| Field ID | Description | Value |
|---|---|---|
| BT-3 | Document type | 381 (Credit note) |
| BG-3 | Invoice reference | Original invoice number |
| Amount | Credit amount | Discount amount plus VAT |
Implementation considerations
- Seller considerations
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Track when the buyer takes discounts.
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Issue a credit note for the discount amount.
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Adjust collected VAT based on the credit note.
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- Buyer considerations
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Get and process the credit note.
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Adjust deductible VAT based on the credit note.
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- General considerations
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Automate credit note generation when a discount payment is detected.
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The credit note references the original invoice in BG-3.
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- SCI mapping
Field SCI path BT-3 credit note type CreditNote/CreditNoteTypeCodeBG-3 invoice reference CreditNote/BillingReference/InvoiceDocumentReference