How to track discounts and promotion amounts in accounting?

Question

We will be running several promotions and discounts and I would like to know how to track those amounts to report at year end.

For example, many customers will use 10% or other available discounts to them, while others may use their "bonus dollars", applied to their purchases.

I would like to know how to set up the system so I can get simple report.

Thanks.

Cybrosys Techno Solutions Pvt.Ltd · Answer

Hi,
The gain and loss from the cash discounts will be recorded in the default cash discount accounts.
To grant cash discounts to customers, you must first verify the gain and loss accounts.
1.
Go to Accounting ‣ Configuration ‣ Settings, and, in the Default
Accounts section, select the accounts you want to use for the Cash
Discount Gain account and Cash Discount Loss account.

Hope it helps,

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