I have configure the rebate agreement and it call the value successfully at the time of invoice, but have some query regarding its a accounting entry.
Lets say invoice value is $100 Net, $17 Tax, and system calculate the provision $10 ref. to rebate agreement.
1. What accounting entry is done at the time of Invoice overall or rebate specific. ?
(I suggest its A/R Dr $117, Sale Cr $100, Tax Cr $17, Provision a/c take the value of $10, but confuse in it, what is the value) please suggest the overall entry.
2. What accounting entry done if I create the credit memo for the provision value of $10. ?
Rebate Expense Dr $10
Rebate Payable Cr $ 10
3. What accounting entry is done at the time of payment. ?
Rebate Payable Dr $10
Cash Cr $10
Looking for the gurus response, confuse in the invoice entry, is it a single entry for provision, what kind of account should we use, etc..
Looking for the gurus feedback.
Regards,