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Trial Balance and Discounts

WCCWCC Member Posts: 9

Hi - I'm working on the April month-end reports for a non-profit (I'm the treasurer), and I'm having an issue with the Trial Balance as numbers weren't making sense. Figured out where the problem is - when I run the Trial Balance, it adds back in the discounts we've given on some charges (e.g. we have a discount to membership fees for early payment and for youth). It accounts for all of the discrepancy ($1,455).

Why would this happen? We're not reversing those discounts so they should not be added back in (thus inflating revenue).

in Accounting Technical Support

Comments

  • NicoletteBNicoletteB Member Posts: 122 ✭✭

    @WCC This sounds a bit odd. Can you go into detail on how you were accounting for the discounts? Are these separate expense charges or were you adding them invoices? Are the discounts being accounted towards the same income accounts as the membership fees?
    As well, have you done anything like an account reconciliation? Many times, we've found report discrepancies are solved by doing a reconciliation to remove any duplicate or incorrect transactions. If you feel like sharing a screenshot of your reports along with some of those discount transactions that could provide more insight. Remember to redact or remove any personal information you do not want to share before posting!

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