Explanation of how to apply a general discount on the customer statement when the discount is not related to merchandise return or reduction on a specific service.
When is this solution used?
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The customer wants a general discount (total amount) reflected in the customer statement.
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The discount is not related to merchandise return or reduction on a specific invoice.
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The customer does not want a credit note showing items.
Important Note: Credit notes are used only when returning merchandise or reducing the value of a service for specific invoices. General discounts on the customer statement are made through a manual journal entry, and if you want to link it to specific invoices, that is possible.
Steps:
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Go to Accounting from the main menu.
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Select Manual Journal Entries.
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Click on Create New Journal Entry.
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Add the following lines:
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Credit Side: Accounts Receivable account, and specify the required customer name.
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Debit Side: Allowance for Discount account.
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Enter the required discount amount.
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Click Save (or Save and Approve based on permissions).
Result:
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The journal entry will be reflected directly in the customer statement as a reduction in the outstanding balance.
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No items or products will be returned, only the discount amount.
Difference between Credit Note and Manual Journal Entry:
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Credit Note: Used when returning merchandise or reducing the value of a service, and is linked to a sales invoice.
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Manual Journal Entry: Used for general discounts or adjustments that are not related to merchandise return, and is reflected directly in the customer statement.
Keywords for Inquiry:
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I want a general discount on the customer statement
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How do I apply a discount on the statement without items?
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Credit note without items
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Total discount on customer statement
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Reduce customer balance without merchandise return
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Manual journal entry allowance for discount for the customer
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How do I apply a discount to a full month statement?
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I want a credit note for a total amount without products
