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Posted April 07, 2021
Dropping Course - Reversing Discount
When a course is dropped, AR Credit is generated that is equal to the course fee.  However, in scenarios when a discount is provided for the course, the AR Credit needs to be adjusted to account for the discount.

1. To drop a course, follow Dropping Course - Refund
2. Navigate to Finance > AR > Credits to find the new AR Credit and go to details. 
3. Update the AR Credit amount so that it is reduced by the discount amount.  At this point, you will see that the Revenue account is debited and the AR account is credited for the amount equal to the credit amount.
4. Click “Add Credit Accounts” to credit the Discount account and debit the Revenue account (by entering a negative amount) and click Save.

Example: A student signs up for a class that costs $100 but is discounted by $50.  Thus, when the AR Invoice is generated, the AR account is debited by $50, the Revenue account is credited by $100 and the discount account is debited by $50.

When the original AR Credit is generated upon Dropping Course - Refund, the Revenue account is debited by $100 and the AR account is credited by $100.

When you follow steps #3 and #4 to accommodate the discount, you will debit the Revenue account by $50, credit the Revenue account by ($50) and credit the Discount account by $50.
Note: Debiting Revenue $50 and Crediting Revenue ($50) results in a total Debit to Revenue to $100.
 
AR Invoice


 Debit Credit
Accounts Receivable $50
Revenue
$100
Discount $50

AR Credit


 Debit Credit
Accounts Receivable
$50
Revenue $50 -$50
Discount
$50

Update

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