Hi SMD ,

Thank you for reaching out. To apply the 10% discount you've received from your vendor to the AP account due to the quality issue, you can follow these steps:

For your purchase invoice:
1. Create an additional line on the invoice.
2. In the 'Description' field, note that this line corresponds to a 10% discount due to the quality issue.
3. For the 'Ledger Account' field, select the relevant ledger account that's associated with discounts.
4. Set the 'Quantity' to 1 and in the 'Price' field, input the discount amount as a negative number, e.g., -10.

This will ensure that the discount is correctly applied and reflected in your accounts payable. If the discount was agreed upon after the invoice was already paid, you can record it when logging the payment:
1. Go to Sales/Expenses > Vendor Bills.
2. Click on the relevant invoice and choose 'Record Payment'.
3. Enter the discount amount in the discount field and adjust the 'Amount Paid' accordingly.
4. Click 'Save'.

Remember, the discount details will appear on your invoice if you select the "Product" template from your Settings > Templates and Logos. This is important for your records and future reference.

If you need to customize the ledger account where the discount is recorded, you can change the default ledger under Settings > Default Settings according to your business needs.

Should you need further assistance or clarification, feel free to reach out, and we'd be happy to guide you through the process.

Warm Regards,
Erzsi