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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / How to account for Sal...
Microsoft Dynamics AX (Archived)

How to account for Sales discounts, returns, invoice discounts in AX 7

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Posted on by RollingStonzcrm

Its my understanding that sales discounts and returns are considered contra-revenue account - typically sales accounts carry a credit balance denoting the sales. When discounts or returns occur, the respective sales discounts or sales return accounts are debited.  So the account types for these (DB/CR default) shouldn't that be Credit by default?  However, in the USMF 

they are shown as Debit! 

403160 Debit SALESRETDIS Revenue Customer Invoice Discounts
403200 Debit SALERETDIS Revenue Discount
403210 Debit SALERETDIS Revenue Quantity Discount
403220 Debit SALERETDIS Revenue Mix and Match Discount
403300 Debit SALESRETDIS Revenue Customer Cash Discounts Taken
403400 Credit OTHERINC Revenue Commissions (Vendor Related)

Also whats the difference between Customer invoice discounts vs Customer cash discounts taken (Is it a early payment discount?) 

how to record the trade discount for e.g. say we give 10% discount on a sale of an item to customer A.  

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  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi RollingStonzcrm,

    Sales discounts and returns do indeed hit the same accounts and reduce your revenue. There is no special sales return account available except in some countries, where a local country-specific feature is available (e.g. Brazil).

    The difference between a customer invoice discounts and a cash discount is that the latter one is posted at the time a payment is made while the first one is recorded with the invoice posting.

    For recording a trade discount on a sale, you can for example record a line discount of 10% directly in the sales order line.

    Hope this answers your questions.

    Best regards,

    Ludwig

  • Verified answer
    Mahmoud Hakim Profile Picture
    Mahmoud Hakim 17,887 on at

    cash discount calculate when you make payment journal.

    customer invoice discounts calculate when you invoice sales order

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