A deduction is created in the Payment Application page whenever a payment is applied to less than the full amount of a ledger entry. Once a deduction is created, enter certain settings that instruct the program how to post the deduction.
Steps
In the search box, enter Cash Receipt Journals, and then choose the related link.
Select the relevant journal line.
On the Actions tab, in the Functions group, choose Deduction Management. The Payment Application page appears.
On the Deduction Lines FastTab, select the deduction line for which you want to enter settings.
Select the Allowed field if the deduction is permissible and does not require resolution at a later time.
You cannot mark a deduction as allowed if its type is unresolved.
Fill in the Account No. field with the account to which the deduction amount will be posted.
Fill in the other fields with additional deduction information if necessary.