This guide explains the key differences between Discounts and Credits, which share some similarities but serve distinct financial functions in ALIS.
Refer to these guides for more detailed information:
What are key differences between Discounts and Credits?
Discounts
Reduce the amount a resident is billed, either for a specific charge (such as Rent) or for an entire invoice.
Discounts are typically configured in advance and applied automatically to invoices based on the Start Date and End Date you set. Discounts also tend to be pre-planned and are ideal for handling promotional periods or rent concessions without manual intervention each month.
Credits
Used to correct billing errors, adjust for service changes after an invoice has been generated, manage non-payment (bad debt), and reconcile resident accounts.
Credits are reactive adjustments and are the preferred accounting method for correcting previously invoiced charges because they create a clear audit trail, especially for closed GL periods.
Discounts Overview
Discounts automatically apply to invoices that fall within the configured Start Date and End Date and are commonly set up before invoice generation.
Discounts can be applied to:
- A specific billing item (for example, “$100 off AL One Bedroom”), or
- The entire invoice using an Invoice Level Discount
You can also add discounts directly to the Discounts section of a resident’s profile to have them apply automatically to future invoices.
Discounts may be configured as:
- Flat amount ($)
- Percentage (%)
- Per diem ($/day) for eligible per diem billing items
By default, discounts prorate along with prorated charges. If needed, you can select Excluded from Proration to apply the full discount amount regardless of proration. The Excluded from Proration option is hidden for per-diem discounts because they already calculate by day.
Discounts can also be configured as Subsidies, allowing them to post to separate GL accounts for accounting and reporting purposes.
Billing items, Discount GL Account #s, and discount eligibility are managed in Billing Settings.
View the Discounts Report to audit discount details within a selected date range.
For more information on monthly billing workflows, refer to the ALIS Monthly Invoicing guide.
Credits Overview
Credits are the preferred method for correcting charges that were billed incorrectly on a previous invoice, such as for an unplanned move-out or a service change.
Applying a credit, especially a prorated credit, creates a separate transaction and preserves a cleaner accounting audit trail than editing historical invoice charges.
When a credit is applied to a paid invoice, it often creates an overpayment balance. This balance can then be:
- Applied to a future invoice, or
- Processed as a refund
Refer to the Resident Refunds and ALIS Pay: Refunds and Voids guides for more information.
You can also add credits directly to the Credits section of a resident’s profile to have them apply automatically to future invoices.
Credits are commonly used to write off uncollectible balances (bad debt) by applying a specific Bad Debt credit to zero out the outstanding invoice balance.
View the Credits Report to audit credit details within a selected Issued On Date range
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