Posting Previously Recorded Invoice Amounts Home | FAQs & Troubleshooting

 

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Both Check Printing and Manual Check and Payment Entry allow you to pay invoices that are already recorded in Accounts Payable. When these invoices are paid, the general ledger posting depends on whether you are accounting for discounts lost or earned.

 Example - Accounting for Discounts Earned

If you are paying a $100.00 invoice and taking the 5 percent discount, the following general ledger postings are made.

G/L Account	Debit	Credit
Accounts Payable	100.00
Cash		95.00
Discount Earned	_______	5.00
	100.00	100.00

If the same invoice is paid without taking the discount (the discount is lost), the following general ledger postings are made.

G/L Account	Debit	Credit
Accounts Payable	100.00
Cash	_______	100.00
	100.00	100.00

 

 Example - Accounting for Discounts Lost

If you are paying a $100.00 invoice and taking the 5 percent discount, the following general ledger postings are made.

G/L Account	Debit	Credit
Accounts Payable	95.00
Cash	_______	95.00
	95.00	95.00

If the same invoice is paid without taking the discount (the discount is lost), the following general ledger postings are made.

G/L Account	Debit	Credit
Accounts Payable	95.00
Discount Lost	5.00
Cash	_______	100.00
	100.00	100.00

The Manual Check and Payment Entry process allows you to record payments on invoices that were not entered in Accounts Payable. When entering these invoice payments, you must distribute the invoice amounts to the appropriate general ledger accounts.

Regardless of whether you are accounting for discounts earned or lost, the general ledger postings for these invoices are the same. If a $100.00 invoice is entered using Manual Check and Payment Entry, the following general ledger postings are made.

G/L Account	Debit	Credit
Accounts Payable	100.00
Cash		95.00
Discount Earned (taken)	_______	5.00
	100.00	100.00

 

For more information, see Explanation of General Ledger Postings.