How to properly record discounts & credits
September 11, 2020
Occasionally you are going to have to give a client a discount or credit on services products. A “discount” refers to a reduction in price and is typically reflected on the original invoice while a “credit” is an amount returned to a client after the fact. Credits are typically put on separate transactions and applied against the original invoice. Regardless of the type of reduction – discount or credit – it needs to be recorded in your accounting software and reduce income for the period containing the discount or credit. There
