How to have discounts apply to appropriate ledger accounts?

When I create a sales order for two line items, a TV ($1000) and a Warranty ($200), then I apply a 20% discount ($240) via Setup>Misc Charges, it doesn’t post to the ledger as we would like it.

The TV line posts to an account called “Sales” and the Warranty line posts to an account called “Deferred Revenue”. The $240 discount posts against “Sales - Promotions”.

Ideally, the header level discount would cause some to post against the “Sales - Promotions” and some would post against “Deferred Revenue”.

Hi Alex,

Unfortunately, the sales order form does not have a functionality to allocate header discounts to the different invoice lines.

So, you would have to setup the discount granted at the line level.

Regarding the special posting you want to have against ‘sales - promotions’, setup ledger special ledger accounts for the discount posting under inventory management/setup/posting/posting sales order tab, discount section.

Hope this helps.



Hi Alex,

I am not sure as why you are using charges for discounts? You have an option of using total discount on the sales header. The ledger for total discount can be set in system posting in GL setup.


I’ve found the “Total discount %” under the price/discount tab of the SalesTable and I’ve tried that. I would think that if I applied 20% discount, it would apply equally to the lines and during posting, each line would post 20% less to their respective accounts. This is odd to me.

I feel silly for not noticing that before, but after trying the header-level total discount, it still posts the $1000 to sales, the $200 to deferred revenue, and then the $240 to “Cash/Invoice discounts”. Our accountant is complaining because she wants the deferred revenue reduced appropriately instead of the discounts all being applied to one bucket if that makes sense.

Is my only option to add the 20% on every line?