AAT Level 2 Practice Test

When a bulk or trade discount is offered, it typically reduces the total amount due on the invoice. This means that the original price of the goods or services is adjusted downwards to reflect the discount, resulting in a lower total payable by the customer. This method ensures clarity for both the seller and the buyer regarding the final amount owed after applying the discount.

Including the discount as a reduction in the overall total is a common practice that simplifies the transaction, allowing the customer to see the total amount benefiting from the discount without potentially causing confusion that could arise from charges or additional fees. Options that suggest adding charges or stating the discount as a flat fee could complicate the transaction and detract from clarity, which is essential for accurate accounting practices.