Configuring Discount Accounts for...

When utilizing discounts in NetSuite, it's crucial to determine how these discounts impact your general ledger. You can accomplish this either by configuring a discount account or by designating the discount item as non-posting. This configuration is fundamental for accurate financial reporting and revenue tracking.

How to Configure a Discount Account

To post the discount against the general ledger, you should set up a discount account. For example, applying a 10% discount on a $100 item means that $100 is recorded in the revenue account, while an offsetting debit of $10 is entered in the discount account (for instance, a sales discount account).

Steps to Configure a Discount Account:

Navigate to Lists > Accounting > Items.
Locate the discount item and click Edit.
Access the Accounting subtab.
Select the Account option and choose your desired discount account from the adjacent dropdown.
Click Save.

How to Configure a Discount Item as Non-Posting

Alternatively, you can set a discount item to non-posting, which allows the net item amount (after discount) to be posted without showing the discount as a separate transaction line. For instance, if a non-posting 10% discount is applied to a $100 line item, only $90 is posted to the revenue account.

Steps to Configure a Non-Posting Discount Item:

Go to Lists > Accounting > Items.
Click Edit for the specific discount item.
Go to the Accounting subtab.
Select the Non-posting option.
Click Save.

Who This Affects

Administrators: Responsible for setting up financial configurations.
Accountants: Need to understand the implications of postings on financial reports.
Developers: May need to customize the handling of discounts in transactions.

Key Takeaways

Configure a discount account to accurately post discounts against the general ledger.
Use non-posting discounts to streamline transaction postings by combining net amounts.
Proper setup ensures transparent and accurate financial reporting.

Source: This article is based on Oracle's official NetSuite documentation.

Frequently Asked Questions (4)

Do I need specific permissions to configure discount accounts in NetSuite?

Yes, configuring discount accounts typically requires access to accounting settings, which may be restricted to administrators or roles with specific accounting permissions.

Can I use both posting and non-posting discounts simultaneously in NetSuite?

You must choose either a posting or non-posting configuration for each discount item, as they determine how the discount is reflected in the general ledger.

What happens to the general ledger if a discount item is set as non-posting?

If a discount item is non-posting, the net item amount after the discount is applied posts to the revenue account without showing the discount as a separate transaction line.

Will changing a discount item to non-posting affect current transactions?

The article does not specify if changing a discount item to non-posting affects current transactions, so care must be taken before making such changes to ensure transactional data integrity.

Configuring Discount Accounts for General Ledger in NetSuite