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How do I process a Discount I give to a client on an outstanding invoice, a Bad debt or a Cash refund?

How do I process a Discount I give to a client on an outstanding invoice, a Bad debt or a Cash refund?

KIS BOOKS defines “Credit Memos” as a discount applied to an unpaid invoice owed to you. Credit Memos and Bad Debts can both be applied in the Accounts Receivable system.

KIS BOOKS defines a “Credit Note” as actual funds returned to your client. These are recorded in the Business Center screen as if you were making a sale but select the “Paid Credit Note” switch on the sales form, the Credit Note will then be recorded as a “negative Cash Sale”. Credit Notes may relate to a prior period that applied different sales tax rates. Therefore, KIS BOOKS will apply the Reverse Tax method to the taxable value of a Credit Note and the User is required to confirm the sales tax prefills and ensure they would be entitled to any sales tax credit calculated.

Could I adjust these accounts with a Journal Entry rather than a Credit Note?

KIS BOOKS will allow Journal Entries so as to allow corrections to be made however, KIS BOOKS will exclude all Journal Entries from all Sales Tax Reporting.

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