Users encounter an error when attempting to update a revenue arrangement: “No line was found to apply a discount to during allocation.” Additionally, the Compliant checkbox remains unmarked.
Solution:
- Understand the Compliant Checkbox:
- The Compliant checkbox indicates that revenue is allocated between revenue elements. It is related to the “Transaction Is Allocation Bundle” setting.
- Verify Discount Settings on Sales Order Line Items:
- Open the sales order and check if the line items have any discounts applied.
- Check Item Records:
- Navigate to the item records used in the sales order.
- Under the Accounting tab, confirm the Permit Discount setting. If it is set to “Never,” this will prevent discounts from being allocated to the item.
- Adjust Permit Discount Setting:
- Change the Permit Discount setting to either Blank or As Allowed to permit discount allocation.
- Save the changes to the item records.
- Understand the Impact of Permit Discount Setting:
- According to SuiteAnswer 49234 on Discounts and the Residual Method:
- When a discount is applied to a multi-element arrangement, it is allocated proportionally to the items based on their revenue allocation ratio.
- Setting Permit Discount to “Never” prevents the allocation of discounts to those items, causing the error mentioned.
- Impact on Prior Transactions:
- Changes to item configurations (e.g., Permit Discount, Create Revenue Plans On, Rev Rec Rule) do not affect prior transactions when updating revenue arrangements and revenue plans.
- Future transactions will be impacted by these changes, but existing ones will not.
- Resolving Errors for Prior Transactions:
- Recreate Transactions: If possible, recreate the prior transactions. This is the most straightforward solution, but it may not be feasible if there are dependent records (e.g., item fulfillment, payment).
- Unmark Allocation Bundle: An alternative solution for prior transactions is to unmark the Transaction Is Allocation Bundle checkbox to generate revenue plans without encountering the error.
Steps to Implement Solution:
- Verify Item Settings:
- Go to Lists > Accounting > Items.
- Open the relevant item records.
- In the Accounting tab, ensure the Permit Discount is set to Blank or As Allowed.
- Save the item records.
- Update Revenue Arrangements:
- Attempt to update the revenue arrangements again to see if the error is resolved.
- Handle Prior Transactions:
- For existing transactions, consider recreating them if possible.
- Alternatively, unmark the Transaction Is Allocation Bundle checkbox to bypass the error.
By following these steps, you can resolve the error and ensure that discounts are correctly allocated to revenue elements, thereby maintaining compliance and accurate revenue recognition.