in onCourse 3.0 we introduced a new Cost of Sale (COS) general ledger account called 54020 Discounts Given.

This works with the updated budgeting feature that allows different discount groups to be itemised in the budget so you can see for how many students, and the cost of these discounts, that each discount type has been utilised. In conjunction with the GL account Discounts Given, you can also see for your organisation the total dollar value of any discounts that have been provided in a defined time period.

In previous versions of onCourse, discounts were counted as reduced income. For example, if a class fee was $300 and the discount was $100, the income line posted to the general ledger was $200.

As of version 3.0, discounts are now posted to, then reversed out of the income account, then posted to the COS account, as per the diagram below. The income recorded is the full class fee.

Diagram explanations:

  1. Income held in advance of the class start date is credited to the Pre-Paid fees liability account and no longer (as of 3.0) deposited immediately into your chosen class income account. It is transferred to your chosen income account either all at once on the start date of your class, or in smaller chunks as each session is delivered, depending on the preference you have set in the onCourse > File > Preferences > Financial > Post prepaid fees option.

  2. An asset is raised to your Trade Debtor account for every invoice that is raised and unpaid. If the invoice is paid at the time of enrolment, this is reversed immediately, via the concurrent payment in process.

  3. These collections of transaction postings are what happens when your enrolment invoice, or manual invoice, includes a discount component. First, the value of the discount is credited to, then immediately debited from your chosen income account. Next, your COS Discounts Given account will be credited for the amount of the discount. Lastly, the Trade Debtors account will be debited for the value of the discount. This now means your invoice payer owes the balance of the enrolment fee minus the discount.

  4. The payment in process can happen at the same time as the invoice is created, or on a future date. When a payment in is taken, the Trade Debtor account is debited for the same amount.

  5. One the first day of the class, some or all of the class fee will be transferred overnight from the Pre-Paid fees liability account to the income account as defined in the class. as per your settings in item 1 above.

This change in the transactions posted to the general ledger also has implications for the manual invoice/credit note creation process.

In versions of onCourse prior to 3.0, if you created a manual credit note by entering a value into the field “Discount each ex tax” this created a negative amount that created the credit note for the customer.

Since the introduction of the GL COS Discounts Given account, this process will credit your Discounts given account, instead of debiting your chosen income account.

To create a manual credit note, that correctly posts a debit to your selected income account, you need to enter a negative number in the ‘Price each ex tax field instead’.

The right way to create a credit note:

The wrong way to create a credit note. You will still create a credit note, where you can transfer or refund the student, but your account will be displeased as the transactions in the general ledger do not reduce the income account.