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Value of sales invoice Saudi Riyal & Product Building material
yes we can quote the price 7% less the market price but in the below conditions
1- the sales with the discount will not affect my current market, so, it is better if the customer is operating in different location than my current customer
2- "the opportunity cost" if the saving generating from using the permit collections is higher than 7% then we can give that much discount for the customer
We can give if company working on WORKING CAPITAL Loan against stocks if working capital loan rate is more than what discount allowed. Even though if purchases in bulk and in cash basis we have to give discount
A. Yes . Because he ready pay cash not criedt
Ans . B.
Since the customer ready to pay the total sales invoice value its not necessary to give discounts. Quotation will be prepared before the sales get confirmed.
OPTION A
if we need cash mony
additionally to all great previous answer the company has to compare the middle sales volume period to compare the benefits of giving 7% as discount ,
the proportion is very high , the company can make combined one between fast moving items as cash paid , with slow moving lower cost as free of charge ,
giving 7% discount contra (bad)effect on the net profit general view if the firm suffer fro sales decrease , acceptable one 1-2% to generate cash without harm
A- Yes you can give discount as promotion & to encourage your customers to pay cash & increase cash sales which will improve the working capital of the organization. And I strongly believe that sales price for cash sales should has discount as encouragement, and yest it need to be in different line from sales price in the sales invoice. About the Percentage value will depend on company policy & the market around, I donot agree that we the idea that to issue the invoice with net price but it always better to have the total price in separate line & then having the discount in separate line in order to have the net price & net value of the invoice at the end which is good for the encouragement of the cash customers.
Yes it should be if the company needs cash and this is better for the company
Option (a) Yes under the circumstances if you want to improve cash flow.
