Types of Discount Items in Sales Orders and Saved Search

In NetSuite, there are two types of discount items: posting and non-posting.

For Transactions::

1. Posting Discount Item: A posting discount item is a type of discount item that affects the posting of the transaction. When a posting discount item is applied to a transaction, the discount amount is recorded in the general ledger and affects the accounting for the transaction. For example, if a posting discount item is used to apply a 10% discount to a sales order, the discount amount will be recorded as a debit to the discount expense account and a credit to the accounts receivable account.
2. Non-Posting Discount Item: A non-posting discount item, on the other hand, is a type of discount item that does not affect the posting of the transaction. When a non-posting discount item is applied to a transaction, the discount amount is not recorded in the general ledger and does not affect the accounting for the transaction. For example, if a non-posting discount item is used to apply a 10% discount to a sales order, the discount amount will not be recorded in the general ledger.

The choice between a posting or non-posting discount item depends on the business requirements and the accounting treatment of the discount. If the discount should be reflected in the financial statements, a posting discount item should be used. If the discount should not be reflected in the financial statements, a non-posting discount item can be used.

For Saved Search::

• If a posting discount is applied, then:
  • Amount (Net) = transaction amount including discount
  • Amount (Gross before discount) = transaction amount excluding discount
  • Amount = Amount (Gross before discount)

• If a non-posting discount is applied, then:
  • Amount (Net) = transaction amount including discount
  • Amount (Gross before discount) = transaction amount excluding discount
  • Amount = Amount (Net of discount)

For example,
invoice #1181 has a $100 non-posting discount. The Amount (Net) is $100 and the Amount (Gross) is $200 for the revenue line.
Invoice #1182 has a $100 posting discount. The Amount (Net) is $100 and the Amount (Gross) is $200.
Although the amounts are the same, the Amount column differs. For invoice #1181, the amount is $100 and for #1182, the amount is $200.

If a posting discount is applied, then the amount column will be Gross before discount = transaction amount excluding discount

If a non-posting discount is applied, then the amount column will be Net of discount = transaction amount including discount