Knowledgebase: Taxes
How do Discounts and Credits affect my taxable income?
Posted by Bob Hinkle on 08 October 2005 02:07 AM

A Discount or Credit entered on the Sales screen effectively reduces the amount of revenue you realize on that sale, thereby reducing your taxable income. This effectively gives you a business "deduction" for the amount of the Discount or Credit. You should never enter a Discount or Credit on both the Sales screen and on the Expenses screen, since you then will be deducting the amount twice, once as a reduction in revenue and once as a deductible expense.
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