What’s the difference between a payment, a discount and a refund?
In AthletaDesk you can track "Payments", "Discounts" and "Refunds" from your athlete families. There is a small but important difference between these three.
- A Payment is when a family pays you money. It's any time you receive a check, cash, PayPal or any other form of payment.
- A Discount is when you want to reduce a family's amount owing to you, but you haven't received any form of money.
- A Refund is when you physically give money back to a family.
It's important to distinguish between the three for tax purposes. When you receive a payment from a family, it's counted toward your annual income. When you issue a discount to a family, it is not income.
When you run a revenue report in AthletaDesk, discounts are not included in that report because you did not receive any money when you issued those discounts.
When you issue a refund, money is returned to a family so your revenue decreases. Typically, a refund is only issued in the case of over payment. For example, if a family accidentally pays you too much, and will not be taking lessons any more, you could issue a cash refund for the difference and return the excess money to them. A refund should NOT be used if you are not physically returning money (cash, check, PayPal, etc.).