Customers taking discounts from invoices

[acro1]

We have retail customers who take deductions from payments for a advertising, early payment, etc. These can range from 1-10 separate discount codes. They are usually a % of the sales invoice but some are a set amount deducted quarterly with no reference to an invoice. We are trying to establish a method that will make sure that when we receive payment that the amount is correct and that it can be tracked using an item # to see what is provided.

Any retail vendors have any suggestions?

Thanks in advance.

[Joey]

If you want to use Items to track these underpayments, then it will make it much more complicated. Just create an Expense account called Sales Discounts and then you can create different sub accounts for the different types. When the customer pays you for an invoice and deducts the Early Pay Discount, you enter the payment for the amount he actually paid you which will leave a balance due on that invoice. Select the Discounts & Credits button at the bottom of the screen and fill in the amount of the discount there. Select the Early Pay Discount sub account of the Sales Discounts expense account and click OK.
If you want to set up different items, then you will have to actually issue credit memos for each one and then go to Receive Payments again to apply the credit memos to the open invoice balances on the customer's accounts to clear the invoices which creates many more transactions and takes much more time than the first direct method.

[acro1]

Thanks! That will work.