If you want to show your discount as a separate expense and do not want to club it with the income, you can do it by applying the discount at the time of invoice payment.
How does it work?
- From the Options tab on the Invoice, click on “Pay Invoice”.
- The Invoice Payment Module will open.
- Click on the Discount amount to apply discounts on the Invoice.
- In the Add Discount dialog box, apply the discount amount, and from there only you can select a discount account in which the discount amount will be reflected as an expense.
- Click on Apply Discount.
- Update the Payment Amount and make the payment by clicking on Pay Invoice.
- In this case, your Income Account will not be decreased; instead, the Discount amount will be shown as a separate expense in the selected Discount Account.
- To track your Discounts, you can see the ledger of that specific discount account in the GL (Analytics) report.