Posted Settlement Discount in Error to Customer or Supplier Account

This happens when you are allocating a transaction on a customer or supplier account but there is a balance (difference) remaining. A pop up appears asking if you want to "write off the remaining balance as settlement discount". If you opt yes, a payment/receipt will be posted to the account with the reference as "Sett Discount". You will find you're unable to use the system's built in Correction facilities to reverse this.

To correct this, you will need to do the following please. The process is the same for the sales or purchase ledger accordingly, but the example provided is to correct a supplier account.

1. Reverse the allocation
Navigate to Purchase Ledger > Adjust Transactions > Amend Allocation
Select the relevant supplier account in the drop down menu.
Highlight the settlement discount transactions & select Edit.

Click Reverse, then Debits and Credits, then Save.

2. Post a matching Purchase Invoice
Navigate to Purchase Ladger > Enter Transactions > Invoice
Select the relevant supplier account in the drop down menu.
Enter a Goods value equal to the settlement discount accidentally applied with a Tax value of zero.

3. Allocate this Invoice against the Settlement Discount
Navigate to Purchase Ledger > Enter Transactions > Allocation
Allocate the newly entered Invoice against the Settlement Discount.

By following these steps the Supplier account balance shall be restored to correct balance (I.e. amount given as settlement discount added back on to supplier balance).