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Invoice Discount in Payment Entry

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  • February 6, 2024

Invoice Discount in Payment Entry

Question: Occasionally, a customer may not fully pay an invoice and requests a discount. For instance, if the total invoice amount is 54 AED, but they pay only 50 AED and request a 4 AED discount. How can we record this scenario in the system to reflect the invoice as paid while also indicating that a discount was applied?

Answer:

In the Payment Entry, enter values as follows.

  1. Paid Amount: 50 AED Allocate 54 AED against the invoice.
  2. This will result in a Difference Amount of 4 AED.
  3. In the Deductions and Additional Charges table, choose the Income account or Discount Expense Account (based on your preference) to record the 4 AED there.