Invoice Discounting

Invoice Discounting allows you to record when a customer's invoice has been discounted (sold) to a bank or financial institution. This is common when businesses need to improve cash flow by selling their receivables.

How Invoice Discounting Works

1. You issue a Sales Invoice to a customer.
2. You sell (discount) the invoice to a bank.
3. The bank advances you a percentage of the invoice value.
4. The customer pays the bank directly.
5. You record the discounting charges and any residual amounts.

Using Invoice Discounting in YousrERP

1. Open a submitted Sales Invoice.
2. Go to the Dashboard or relevant section.
3. Record the discounting details:

- Discounting Date: When the invoice was discounted

- Bank: The financial institution

- Amount Received: The amount advanced by the bank

- Discounting Charges: Fees charged by the bank

1. Create a Journal Entry to record the charges and receipt.

Accounting Impact

When an invoice is discounted:

• Debit: Bank Account (amount received from bank)
• Debit: Discounting Charges (bank fees)
• Credit: Accounts Receivable (reducing the customer balance)

Related Topics

• Sales Invoice
• Journal Entry