Introduction
In business, you often find yourself either offering or receiving discounts. In Empress, such transactions are typically recorded directly in the final invoice amount, without booking the discount separately. However, if you prefer to keep a separate record of these discounts, this guide will guide you through the process.
Understanding Discounts in Empress
In Empress, Discounts Allowed and Discounts Received are treated differently:
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Discount Allowed: This is when you, as a supplier, offer a discount to your customer. This is considered an expense in your bookkeeping.
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Discount Received: This is when you, as a customer, receive a discount from your supplier. This is considered income in your bookkeeping.
How to Record Discounts Separately
If you wish to record these discounts separately, you can follow these steps:
Step 1: Create the Accounts for Discounts
In your Empress interface, navigate to the “Chart of Accounts” section. Here, create two new accounts:
- An Expense account named “Discount Allowed”
- An Income account named “Discount Received”
Step 2: Create an Invoice and Apply the Discount
Next, create an invoice in Empress. Select the appropriate item for the invoice, and then head to the “Sales/Purchase Taxes and Charges” section. Here, choose the relevant discount account (based on whether you’re granting or receiving a discount) and enter the discount rate as a negative value.
For example, if you’re offering a 10% discount to a customer, you would select the “Discount Allowed” account and enter -10 in the rate field.
The total value of the invoice will then be reduced by the discount amount, and the discount will be recorded under the “Discount Allowed” account.
Step 3: Finalize the Payment
The final step is to make a payment. Navigate to the “Payment Entry” section of Empress and complete the process as normal.
Note: The same process applies when creating a Purchase Invoice, with one small change: you would select the “Discount Received” account in the “Purchase Taxes and Charges” section.
Conclusion
This guide has walked you through the process of booking discounts separately in Empress, allowing you to keep a clear record of both discounts allowed and received. This feature can help enhance your business processes by providing a more detailed view of your business transactions.
For further assistance, please refer to the Empress support resources or contact our support team directly.