Buzz
Selling prices and discounts are commonly used in the economic sector and are not unfamiliar to most people when shopping. However, how selling prices and discounts are pronounced and written in English may not be known to everyone. Therefore, in the following article, Mytour will help readers understand the concepts of selling price and discount in the most specific and detailed way.
What are selling prices and discounts?
1. What are selling prices and discounts?
What is selling price? In English, discount is pronounced as Discount: /ˈdɪs.kaʊnt/, and selling price is pronounced as Price /praɪs/.
Concept of selling price
Each type of product can be sold at a standard selling price (referred to as Po), based on the customer at the time of purchase, subtracting a percentage, and calculating the final selling price (Ps).
Calculation method for the final selling price, denoted as Ps:
Ps = Po - D1 - D2 - D3 - D4 - D5
Where:
- Po is the retail price in the market.
- D1 is discount 1 - due to commercial advantage 1.
- Similarly, D2, D3, ... .
2. What is trade discount?
In addition to understanding selling prices, it's important to know what discounts are to grasp key concepts in business. Trade discount can be understood as the amount by which a business reduces the listed price for customers purchasing in bulk.
- Value of returned goods: This is the value of the quantity of goods sold that is determined to be unsold and rejected by customers.
- Discount on goods sold: This is the deduction for the buyer due to goods being of poor quality, incorrect specifications, or excess inventory.
What is selling price, and how to differentiate various discounts
3. Differentiating types of discounts, including:
- Price discount (PD): It's a percentage discount on the listed price based on the customer's commercial advantage. PD is the basis for calculating the selling price for customers (Ps).
- Trade discount (TD): It's a percentage or unit discount on the quantity of sales purchased by the customer at that purchase or accumulated over a period of time. TD is recorded as a separate line, reducing net revenue, and is accounted for in Debit Account 521.
- Payment discount (CKtt): It's a percentage discount on the early payment amount of the customer at the time of payment. CKtt is recorded afterwards, increasing expenses, and accounted for in Debit Account 635.
Accounting Procedure:
- Only record in this account the trade discounts enjoyed by the buyer during the period in accordance with the trade discount policy established by the enterprise.
- In cases where the buyer accumulates multiple purchases to qualify for the trade discount, this trade discount amount is deducted from the selling price on the final 'Invoice (VAT)' or 'Sales invoice'.
Discount Formula
CKtm = g (t,k,h,s,d,f)
Where:
- Time (from 1/1/2015 - 31/03/2015) is denoted by (t).
- Customer group is denoted by (k).
- Product (or type of product) is denoted by (h).
- Quantity sold / sales volume is denoted by (s); (d).
- By order / cumulative is denoted by (f).
If you have the chance to travel abroad, it's essential to learn how to ask for prices in English, including ways to ask, respond, and negotiate prices to make the best purchases. Particularly, knowing how to inquire about selling prices in English will prevent you from overpaying by negotiating reasonably. Additionally, when traveling abroad, to avoid getting lost and wasting time, you need to know how to ask for directions in English. Memorizing and internalizing basic communication phrases will greatly assist you during your experiences, exploring new territories.
