ANS-1811 · ACCOUNTING & FINANCIAL CONFIGURATION
Why Can’t Posting and Non-Posting Discounts Be Used on the Same NetSuite Transaction?
NetSuite prevents combining posting discount items with revenue recognition schedules to ensure proper deferred revenue accounting.
Short answer
NetSuite disallows posting discount items with revenue recognition schedules on the same transaction because it forces immediate recognition of the discount, conflicting with deferred revenue principles. Use non-posting discount items for transactions with revenue recognition schedules to avoid this issue and ensure proper accounting.
Scenario
Users encounter an error when attempting to include both posting and non-posting discount items on the same NetSuite transaction. This typically occurs when a posting discount item is associated with a revenue recognition schedule, leading to conflicts with NetSuite's accounting rules.
Solution
The conflict arises when a posting discount item is included on a transaction that also utilizes a revenue recognition schedule. NetSuite's design prevents this combination because a posting discount item would force 100% of the discount to be recognized immediately, which contradicts the principle of deferring revenue over a schedule.
To resolve this, ensure that transactions with revenue recognition schedules utilize non-posting discount items. This approach aligns with NetSuite's current Advanced Revenue Management (ARM) best practices for handling discounts in deferred revenue scenarios.
NetSuite's current guidance recommends using non-posting discount items to ensure proper deferred revenue accounting, as they do not interfere with revenue recognition schedules.
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