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HOW TO CREDIT BACK A DISCOUNT WHICH WAS
NOT TAKEN ON ORIGINAL CASH RECEIPT
In order to credit the customer a discount for which they were entitled, after their cash receipt had been posted, you could 1) Enter a General Journal Entry or 2) You could enter a Credit Memo with the check amount. The General Journal Entry would be the easiest way of posting to the correct accounts i.e. Discounts Given/Taken & Cash. The second option would be to put in a Credit Memo with the check amount and number to void the check and reverse the original amount of the Invoice. Then, if you consider this a Discount given you could put through another Invoice with a Discount amount. If this is a Discount Taken then put through a regular Invoice (no discount on Invoice) and enter the discount on the first and second page of Select Cash Receipts. Next, enter the net amount of the check in the check amount field. Then you would post this (with check number). In the Distribution file (if Discount Taken) you will now have a negative "R" type transaction (for the revenue side), a positive "C" transaction (for the cash receipt) and a positive "E" transaction (for Discounts Taken).
Discounts taken should be entered in when the cash receipt is originally posted. You would put in the amount of the check in the check amount field and then enter in the amount of the discount in the discount amount field. On screen two of Cash Receipts entry screen, you would simply enter through the transaction you want to apply the cash receipt to. Then go to the first screen and f5 to process. This will also create the transactions stated above. You cannot enter a zero check amount with a discount.
discnt.doc 10/22/93
