Invoice Discount in Payment Entry

Question: Sometimes a customer doesn't pay totally the invoice and he wants us to give him a discount. For example, the total invoice is 54 euro but he pays 50 euro and takes 4 euro as discount. How to register this case in the system in order the invoice is shown as paid but at the same time we know that there were a discount on the invoice.


In the Payment Entry, enter values as follows.

  1. Paid Amount as 50 EUR
  2. Against the Invoice, allocate 54 EUR
  3. This will leave to Difference Amount of 4 EUR
  4. In the Deductions and Additional Charges table, select Income account or Discount Expense Account (as per your preference) to book 4 EUR there

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