Purchase returns and allowances and purchase discounts business functions are also part of the acquisition and payment cycle.

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Purchase returns and allowances and purchase discounts are part of the acquisition and payment cycle as they affect the amount to be paid to the vendor or supplier for the purchased goods or services. Purchase returns and allowances are deductions from the amount owed to the vendor for returning the goods or accepting a reduction in the price due to damaged or defective goods. Purchase discounts are reductions in the price offered by the vendor for early payment of the invoice.

Purchase Returns and Allowances and Purchase Discounts Business Functions Are