Steps showing how to add earned discount from a specific supplier and apply it to invoices after saving:
1. Create an Earned Discount Account:
- Go to Accounting > Chart of Accounts.
- Click on Add New Account.
- Select the main account, Revenue account
- Enter Account Name: Earned Discount.
- Select Account Type: Other Income.
- Enable the option Payment and collection can be made through this account.
- Click on Save.
2. Deduct Amount from Supplier Invoice:
- Go to Purchases > Purchase Invoices.
- Click on Pay next to the invoice.
- Select the “Earned Discount” account from the accounts list.
- Enter the discount amount, and it will be deducted from the invoice value.
- The invoice status will change to Paid.
3. Alternatively, you can deduct a specific amount from the supplier account using a manual journal entry:
- Go to Accounting > Manual Journal Entries.
- Click on + to add a new entry.
- Enter the entry details as follows:
- On the Debit side: Select the Accounts Payable account and supplier name with the discount amount.
- On the Credit side: Select the “Earned Discount” account with the same discount amount.
- Click on Save.
- You can allocate the journal entry to the invoice by clicking on the invoice indicator next to the Accounts Payable line and selecting the required invoice,
