Some invoices to customers include chargebacks that are netted out of the invoice. How can I show the revenue and chargeback on the same document to get a net invoice?
I hoped to be able to show the chargeback as a deduction on the original invoice because the amount is known at that time. Currently, we show the net revenue but this understates revenue and the offsetting expense.
Let me show you how to show a deduction/chargeback on the original invoice.
You can create a new service item and name it "Chargeback" or anything and add it on the invoice. Make sure to check for an accountant if you're not sure about which Income account the item should affect.
Once done, you can then add the service item on the invoice and ensure that the chargeback amount is in a negative value, then save it. This way, it will deduct the original invoice amount.
If you have recently created an expense, you can delete it under Expense Transaction in the Expenses menu.
You can also delete the sales receipt if you had created one when you followed the steps above.
1. Choose Accounting at the left panel and then select Charts of Account.
3. Find the name of the bank where the created sales receipt has been deposited.
4. Click View register under Action column.
5. Select the sales receipt and click it to expand the page.
6. Hit the Delete button.
7. You'll be prompted with Are you sure you want to delete this transaction? Click the Yes button.
I appreciate following the steps above, so if you have any questions please let me know. I'm always here to help. Have a good one!