Settlement of cash discount - calculated correctly?

Hi everyone,

just a quick question whether the discount has been applied for us (somehow after the long working day I'm not quite with it mentally).

So here basically our invoice:

1st installment invoice: €20,000. 2% discount We pay: €19,600

2nd installment invoice: €36,000. 2% discount We pay: €35,280

3rd installment invoice: €25,000. 2% discount We pay: €24,500

4th installment invoice: €30,000. 2% discount We pay: €29,400

For the final invoice, he now calculates as follows:

Total invoice amount: €121,000 - 2% discount = €118,627.45

- the 4 paid installment invoices (total €108,780) results in a remaining amount of €9,847.45.

Is that correct or do I have a misunderstanding??

I just want to be sure everything adds up with the amount!

Thanks for your feedback!

If a 2% discount is deducted from 121,000 euros, the amount is: 118,580 euros Minus the 4 paid instalment invoices (108,780) results in a remaining sum of 9,800. Where do the 45 cents actually come from?

121,000 * 100 / 102 = 118,627.45

Oh, I thought he takes 2% of the 121,000 = 2420

My contribution was somewhat without comment :-) I just wanted to show how the sum was calculated. In my opinion, the calculation should be 121,000 * 0.98 Actually, he probably saw the 121,000 as 102% and then calculated it down to 100%. I would address that.

Total invoice amount: €121,000 - 2% discount = €118,627.45

To emphasize DNL's contribution even more. Normally, a discount means that you subtract x percent of the invoice amount, i.e. €121,000 - 2% of €121,000, which is equivalent to 121,000 * (100% - 2%) = 121,000 * 0.98 = €118,580.

You are therefore being charged €118,627.45 - €118,580 = €47.45 too much. This does not have to be malicious, maybe the invoice issuer can't calculate or you agreed on something different, which does not emerge from your question. It can also be a cheap trick ;-)

:-)