3 Replies Latest reply on Aug 13, 2002 1:23 PM by 318448

    Accounting for Discounts given

    318448
      Hi,
      Actually I have got the solution for the problem I was facing with using the discount feature. The problem I was trying to explore a feature whereby I was setting up a qualifier where I'm defining the Customer Class as 'DLR' which would be eligible for discount say @10%.
      I subsequently set up a modifier where I defined a modifier type discount @10% and attached it with predefined qualifier at both the header and line level.
      When I was trying the order entry the price which was defaulting from the attached price list was not getting reduced by 10%.
      Now this problem has been solved by giving a request from the 'Oracle Pricing Manager' called as Build Sourcing Rule.
      Now I want to know is there any way of accounting the discount given.
      Say my list price is 100 and i have given a discount of 10% and my selling price becomes 90.
      Then
      Debit Credit
      Customer 90 Sales account 100
      Discount 10

      How should I do the setup for discount and make sure that when the modifier gets applied whatever is the discount goes into the appropriate accounting setup.

      I will be obliged if somebody guide's me on this issue.

      Regards,
      Anil Wadhwa
      anil.wadhwa@amtrexhitachi.com
        • 1. re:Accounting for Discounts given
          317147
          Anil,

          I don't think any setup is required for the accounting piece as long as you set your modifier properly. I believe it's all taken care of accordingly.

          I hope someone can confirm this!

          Cheers

          Riad
          • 2. re:Accounting for Discounts given
            317147
            Anil,

            I don't think any setup is required for the accounting piece as long as you set your modifier properly. I believe it's all taken care of accordingly.

            I hope someone can confirm this!

            Cheers

            Riad
            • 3. re:Accounting for Discounts given
              318448
              Hi Riad,
              Thanks for ur reply..i'll tell u the exact setup that we have done at our end. We have linked the AR Transaction Type with the Line Types and the line types are attached with Order Type. In the AR Transaction Type for our normal finished good sale we have setup a receivable account, revenue account and freight account.
              I have checked the transaction in AR after auto invoicing and I found that the discount does'nt get transported bcoz probably we have not defined the accounting flex filed for that. Now I'm not sure where should i define the AFF for discount.
              Moreover what I have gathered thru metalink is that accounting can only be setup for cash discounts which are linked to the payment terms. So how should I account for discounts which don't fall under the category of 'cash discounts'.
              I hope I'm clear on this issue..
              Thanks & Regards,
              Anil Wadhwa
              anil.wadhwa@amtrexhitachi.com