Business Use Case:
Often, customers areovercharged on price or negotiate price after a sales order has been fulfilled.In order to reflect the reduction in price, without impacting the inventoryaccounts, a solution is offered by adjusting the amount of invoice using a DiscountItem Type.
The steps toaccomplish this are listed below:
1. Navigate to Lists > Accounting> Items > New
2. Choose ItemType Discount
3. Enter an Item name/ Number such as PriceCorrection.
4. In the Rate column, enter the amount that you want to reducethe Invoice amount by.
5. Under Accounting subtab > Accountssection, check Account radiobutton and choose Sales account or any other account to record therevenue from the item.
6. Save therecord
7. Navigate to the Invoice where youwant to reduce the amount.
8. Edit the invoice.
9. Enter a new line onthe invoice and choose the discount item.
10. Save theinvoice.
11. Print the invoice toconfirm that the net amount on the invoice has been reduced by thediscount amount.
12. Click on Actions > GL impact.Notice that the amount posted to the Accounts Receivable and Salesamount has been reduced to incorporate the price reduction.
13. Payment received byclicking the Accept Payment buttonwill reflect the new price.