What is the best way to record accrual of allowances related to sales invoices (especially those coming from Target, Amazon, Costco, etc.)? Allowances like dot.com allowance, defective allowance, etc. Not all of these types of allowances are actual deductions from our gross invoice amount. Some of them are just mere estimates or accruals because the actual deductions could be different from the standard x% of the gross invoice amount. If we include the allowance as a discount line in the Invoice, then it'd reduce the invoice amount due. When we receive the payment, it could be higher or lower than the invoice amount due because the standard allowance rate was not used.