How do I credit a 3rd party 'principal account' with discount

Scenario: You have agreed to pay a 3rd party 'principal account' with the value of discount allowed, but they don't want the transaction to be visible by the sub-dentist accounts.

Method: You credit the principal customer account either by raising a credit note (Action > New Credit Note), or with a Payment Credit (Customer menu > Add payment/credit).

Note: The former is better if any tax is involved as you will reduce your tax liability, otherwise a simple payment credit is sufficient.

You can then either make a BACS payment to 'give them the money'  (Customer menu > Make refund/debit), or you can leave the value as a credit on the account.

If the customer account doesn't already exist in LabManager as a Principal Account type, create a customer account of type 'Principal Account'.


Example of typical Principal Account

Acct Name:  Another Practice Holdings LTD
Acct Type:  Principal Account

date           Code       Description                  DR           CR         BAL
05/05/2021     Credit     BACS receipt                         9000.00    -9000.00
05/05/2021     Credit     Early paymnt disc                    1000.00   -10000.00
05/05/2021     Debit      Transfer to a/c 0220    6500.00                 -3500.00
05/05/2021     Debit      Transfer to a/c 0235    2500.00                 -1000.00
30/05/2021     Debit      Cheque Refund           1000.00                     0.00
             


Also See:

LabManager Help: Receive payments from a principal account



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