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
Discount $50

AR Credit

Debit Credit
Accounts Receivable
Revenue $50 -$50

See also
Dropping Course - Refund    Course    Fund    DAT   
PCR Educator School Information System is an online database engineered for schools and universities to deliver the highest level of flexibility, unique experience, transparent communication and customized design.

Schedule Demo

Please, make sure that all required fields (marked with *) are completed.
    School Name *
    Relation to School *
    Last Name *
    Your First Name *
    Your Email *
    Your Phone # *