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Request for Advice: Correcting Discount Entries Impacting Item Margins

edited Jun 2, 2025 2:53PM in Ask A Guru 5 comments

Hi All,

I am seeking advice and best practices regarding an issue we recently encountered.

Our sales reps have added discount amounts as line items in some sales orders, rather than applying them as header-level discounts. While the discount amounts are accurate, entering them at the line-item level has caused the margin for certain items to appear negative. These orders are from the previous fiscal year and have already been billed and paid by the customer.

Given that we use revenue recognition, we are looking for the best way to correct this issue to ensure that item margins are reported accurately.

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