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Set Up Discount Ledger for UAE e-Invoicing

In UAE e-Invoicing, discounts provided on sales or purchases must be reported correctly for accurate taxable value calculation. By configuring a discount ledger with the required statutory details, you can ensure that discounts are applied and reflected properly in e-Invoices and VAT calculations.

1. Create a ledger, as needed.
2. Under: Select one of the following parent groups:
   • Direct Expenses
   • Direct Incomes
   • Indirect Expenses
   • Indirect Incomes
3. Type of Ledger: Select Discount.
   
4. Under Statutory Details, configure the required options.
   
   1. Include in Assessable Value Calculation: By default, it is set to VAT.
   2. Appropriate to: From the List of Options, select the applicable transaction type.
   3. Method of calculation: Select how the discount or allowance should be calculated for e-Invoicing.
      1. Based on Quantity: The allowance depends on the quantity of goods supplied.
      2. Based on Value: The allowance is calculated on the value of the supply, such as a percentage discount or a fixed discount amount.
   4. Reason for allowance: From the List of Reasons, select the applicable reason.
5. Provide other necessary details and press Ctrl+A to save.