How to manage cash discount on payment Entry

We will pay cash discount to customers if they will pay on time.
Suppose My sales invoice amount is 50,000 & we want to allow him 1000 rupees discount on payment.How should we manage this type of scenario. Kindly help.

Payment Entry gives and option to add Deduction / Loss. You can create a Cash Discount account and route it through the same. Kindly check this:

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Did you ever figure out how to do this? We are still showing these invoices outstanding even though the customer took a discount that we issued them. Thanks!

I think this post will help you solve it. Payment Entry - Deductions/Loss not working

In brief, just check in your allocation amount (in last column) amount should be equal to your Sales Invoice and the amount of discount given should be shown as -ve amount under deduction table. So the total of (i) allocation table & (ii) deduction table equal to the payment Received.

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