What happens during a payment run when an invoice with a discount is posted using the gross method?

In a payment run when dealing with an invoice that incorporates a discount using the gross method, the discount indeed gets posted to a discount income account. This occurs because, under the gross method, the invoice is initially recorded at its full amount before any discounts are applied. When the payment is made, the full invoiced amount is paid, and subsequently, the amount of the discount is recognized and posted as income.

The process ensures accurate financial tracking, as it reflects the true income implications of the discount granted to customers or received from suppliers. This handling aligns with the principles of accounting by correctly representing not just the cash movement but also the income derived from such discounts.

Other options do not capture the nuances of how discounts are treated in this scenario under the gross method. For instance, increasing payables by the discount amount would inaccurately reflect for accounting purposes, as it relates to cash outflow rather than an adjustment to the liability. Similarly, no adjustments to payables without impacting accounts or rounding off the payment amount do not accurately represent what occurs in practice. Thus, posting the discount to a designated income account correctly reflects the financial aspect of invoicing with discounts.