Quicken & Other Budget/Accounting Software/Discount

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Question
Is this correct?

Discount given to customer - cost of sales account
Discount given by supplier - expense account

Answer
I usually make discounts given to customers an income account
so that the owner can see "net sales" after discounts.

However, there is nothing wrong with it being a COGS account

Discounts given by supplier I would make a cost of good sold account
So that the owner can see the total cost of goods after discounts taken
because of a healthy cash flow.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

We sell and support QuickBooks Enterprise
http://www.qbalance.com/enterprise_quickbooks.htm

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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