# Weekly Dynamic: AP Trade Discount Use

- URL: https://dynamicaccounting.net/weekly-dynamic-ap-trade-discount-use/
- Date: 2014-04-21
- Topics: Tips & Hidden Features, Payables & Receivables
- Type: original article

I ran into an interesting scenario. A not-for-profit doesn’t use Inventory, they don’t have a large enough need to support the setup. However, they do buy bus passes in bulk to help people down on their luck. They’ll buy a couple of thousand dollars of bus passes at once and then release individual passes to people in need. The bus passes are a considered a prepaid and they have a formal process to release them and they want to track who they are released  to.

The old process bought the passes via AP and increased a prepaid. The prepaid was released via AP and offset with an internal credit card. This let them track who got bus passes, but it left a liability on the internal credit card that eventually had to be cleaned up.

Since they weren’t using Trade Discount, we reset the Trade Discount account to offset the liability. Now they release a bus pass to a person and offset the transaction with a trade discount. This significantly reduces the amount of work and releases a bus pass in a single transaction.

I covered before how trade discounts can help clean up received not invoiced too. Sometimes the little used pieces hold the key to making life easier.

[![Capture](/wp-content/uploads/2014/04/Capture-300x233.png)](/wp-content/uploads/2014/04/Capture.png)