How to create invoices (with discounts) for one-time customers who pay in cash directly?
discount option on
Receipts is still an idea.
you can simply create a separate customer, for example Walk-in Customer under the
Customers tab, and issue
Sales Invoices for every cash sale.
That is not a bad idea but I think a simpler solution would be to allowing users to pick cash accounts in
How would that work?
A sales invoice is credited to Sales and debited to a customer account
It cannot also be posted to a cash or bank account as well
It should work the same way as
Receipts I guess. The cash account should be treated as a customer in this scenario.
Maybe you could make one customer (to rule them all) for all one-time customers. And maybe record the customer name, in a custom field, or somewhere in the invoice.
As AntonisV mentioned. For us it depends on how important the one time customer is. Maybe there are warranties or big dollar values involved etc. Nevertheless a Generic customer can be used which if queried you could then see all instances of “One time” Customers. Example a customer called “Cash Sale” or whatever description you choose.
Yes, I like the idea of Antinos V compote accountant
Sounds similar post #2 to me.
Yes it is, but maybe “one to rule them all” worked as a perfect explanation of what @sharpdrivetek said !
That should work for now but it’s a bit tedious to create an invoice and a receipt every time.
but it has much more benefits in the long run with better reporting than just issuing a receipt.
I usually add the actual customer name in the Address field and I suppress the generic customer name with a custom theme on the sales invoices. it is just a user choice and this works for me.
Although advise given here by others to use invoices is most sound you could as alternative (and also implemented by others) create a Customer Discount account under Expenses in the Chart of Accounts. You can create invoices with all the sales line items and add a final line Discount. See screenshots below for the results.
Edit screenshot, I calculated the 10% discount by entering -(20+50+33)/10)) assigned to the Customer discounts account, ie the sum of the 3 sales items totals divided by 10 to give 10% discount. I mixed inventory items and direct sales items just to complete the example.
The resulting screenshot.
Thanks this should work. Would it cause problems if I didn’t use an expense account? (for total discounts of 0.70 cents etc. )
Yes it would.
it should be noted that whenever you are applying discount as a separate line item directly to an expense account, the average cost of inventory and the inventory profit margin are affected.
Please explain. In this way nor the sales value nor the cost value of the inventory is affected, only the profit of the business like with any other expense, which should be as you give away some of your revenue.
exactly my point.
an inventory item usually sold at 100 might have a discounted rate of 90. Manager will calculate the inventory profit margin based on the sold price 90 only when the discount is applied to the line item.
when you are adding the discount as a seperate line directly to another expense account, Manager will calculate the profit margin of the inventory item based on the sold price 100. only the P&L of the business as a whole is correct in this case.
so this method would only suit users who do not wish to have detailed inventory performance reports.
Agree to that, I do not care that much as long as I can track by clicking on the Customer Discount figure in expenses to whatever I gave as total discount rather than itemized discount to anonymous probably one-off customers. I can still easily see what has been sold and the cost of sales. At the end I need to know the sales value - cost of sales - expenses.
Could you elaborate more? I just want the discount to be subtracted from sales profit. I don’t need to track how many discounts were given.