Which item type is used to show a payment on a transaction?

• A. Payment item
• B. Discount item
• C. Subtotal
• D. Other charge

Answer: (A)

Displaying a payment on a sales form is done with a Payment item. This type line is specifically meant to reflect money received from the customer on that transaction, so the amount paid is shown alongside the items or services and the accounts receivable balance is properly updated.

A Discount item reduces the total by a discount, a Subtotal line is a calculated display of running totals and isn’t used to record cash received, and an Other charge adds extra fees to the balance. Using a Payment item keeps the receipt of funds separate and accurately posted, which is why it’s the best choice for showing a payment on the transaction.