Is a reduction granted by supplier from the invoice price in consideration of immediate or prompt payment
Is a reduction granted by supplier from the list price of goods or services on business consideration re: buying in bulk for goods and longer period when in terms of services
As an incentive in credit management to encourage prompt payment
Allowed to promote the sales
Not shown in the supplier bill or invoice
Shown by way of deduction in the invoice itself
Cash discount account is opened in the ledger
Trade discount account is not opened in the ledger
Allowed on payment of money
Allowed on purchase of goods
It may vary with the time period within which payment is received
It may vary with the quantity of goods purchased or amount of purchases made
cash discount和settlement discount是基本相同的，都是提前付款，或者現金付款所享受的優惠，原理是相同的，賣家希望快點收回錢，所以你付錢越早給您的優惠越多；這個的處理方法是將折扣部分作為費用處理；
trade discount通常是針對促銷活動一類的，比如買2件減100元錢這種，或者買100件單價就降低3塊錢，也就是商家為了刺激你多買一些給的折扣，這種折扣不做費用，直接把銷售價格按照折扣後的價格記錄就可以了~
下面這個是對比：
Cash Discount
Trade Discount
Is a reduction granted by supplier from the invoice price in consideration of immediate or prompt payment
Is a reduction granted by supplier from the list price of goods or services on business consideration re: buying in bulk for goods and longer period when in terms of services
As an incentive in credit management to encourage prompt payment
Allowed to promote the sales
Not shown in the supplier bill or invoice
Shown by way of deduction in the invoice itself
Cash discount account is opened in the ledger
Trade discount account is not opened in the ledger
Allowed on payment of money
Allowed on purchase of goods
It may vary with the time period within which payment is received
It may vary with the quantity of goods purchased or amount of purchases made