You may need to reduce the amount which is a client pays for charges on an event. Depending on where the event is in its life cycle, you may use either a discount or an adjustment.
If the price change does not need to show on client documents and the charge has not been invoiced yet, simply update the price or quantity of the item or rental rate.
When to Use Discounts vs. Adjustments
Add a discount if:
- The charges have not been invoiced yet or if your process allows a sent but unpaid invoice to be updated (since discounts must be on the same invoice as their charges), AND
- The price reduction should be visible on client documents.
- You do not need to issue a credit note (negative invoice).
The discount and its charge must be shown on the same invoice.
Add an adjustment if:
- The charges have already been invoiced and paid or if your process does not allow you to edit a sent invoice (since adjustments can be shown on a separate invoice), AND
- The price reduction should be visible on client documents.
- You need to issue a credit note (negative invoice).
Adjustments can be shown on a separate invoice from its associated charge.
Accounting Implications
Discounts and adjustments will also affect your financial accounting in different ways:
Discounts | Adjustments |
---|---|
Discounts can have their own (optional) GL account. | Adjustments always write to the GL accounts corresponding to the charge. |
Discounts may not have the same tax treatment as the charge. (See Manage Discount Types) | Adjustments always reverse the tax treatment of the charge. |
More Information
For more information, please see:
We are also happy to talk through specific scenarios to establish best practices for your venue. Contact us!