We have our P&L set-up where cost of goods is split into two categories, direct and indirect costs. Then below that we have expenses. When we pay a vendor bill early that offers a discount, the discount is automatically routed to a purchase discount account under direct costs. Right now all of our vendors that offer a early pay discount are vendors where we buy direct materials, so that is fine.

But we are currently negotiating with all of vendors to offer an early pay discount. I would like the early pay discount for certain vendors to go under indirect costs, while other vendors to go under expenses.