Hi,

I am trying to find a way to assign a GL code for discount pricing. Currently, the discounts given were not recorded anywhere in our GL. We are using the discount pricing method on our Inventory.

For example,
base price of an item of $10.00 discount at 25% ($2.50). The transaction is recorded as
Dr. A/R $7.50
Cr. Sales $7.50

Is there a way to make the transaction to be recorded as follows?
Dr. A/R $7,50
Dr. Discount $2.50
Cr. Sales $7.50

Thanks!

The only way you could make that journal entry work is by using a payment discount. This trick really only works for cash sales as the Terms must be setup to process the discount at the time payment is applied to the transaction.

Hi doctorini

You do realize your journal entry doesn't balance. I think you mean that Sales should be $10.

But if you want to show sales of $10 then you have to sell the item for $10. There is no getting around that.

There aren't too many ways of posting a discount to a separate GL account without keying in the discount separately. Douglas' method is one, but I think a better one (still not very good) is to use sales tax, assuming you aren't using sales tax for real. Adagio lets you enter a negative sales tax rate, the "tax" can go to any GL account you want, and it will calculate automatically.

If this appeals to you, but you are concerned that sales tax doesn't calculate until you actually ship an item, you can enter your orders in SalesCQ, which DOES calculate sales tax.

Steve

Steve:

Your idea would be fairly automatic as long as the customer gets the same discount on all items. Taxes could be setup to work with this configuration. Customers could be assigned to different tax (discount) groups. It may take some testing to figure it all out but the solution would still be limiting.

Another possibility, again it would take some work to figure this out, might be to use a negative tax on an Eco fee to give you some control over different discounts for different items.