You can create discount items to use on sales transactions. When these items are added, discounts are applied to the items being sold. Using discount items enables you to track discount amounts without affecting inventory valuation.
You can add discount items as line items, or you can select a discount item in the body of sales transaction.
Posting vs Non Posting Discount Items
- If a 10% non-posting discount is applied to a $100 line item, the amount of revenue that posts to the associated revenue account for that item is $90.
- If a 10% posting discount is applied to a $100 line item, the amount of revenue that posts to the associated revenue account for that item is $100. Also, an offsetting debit amount of $10 posts to the related discount account, such as the Sales Discounts account.