Accounting Distributions for Discounts and Surcharges

When you define discounts and surcharges, you must associate the discount or surcharge with an accounting distribution code. When you add a discount or surcharge to a contract line with a price type of Amount or Percent, the system creates accounting distribution lines for the discount or surcharge amount on the Accounting Distributions Discounts page. The distribution code that you specified for revenue populates as a default value. This distribution code is used when revenue is recognized and sent to General Ledger.

The PeopleSoft General Ledger business unit populated into the discount accounting distribution is the same as that which is populated by default to the contract line accounting distribution. If you change the PeopleSoft General Ledger business unit for the discount revenue accounting distribution, the system generates interunit entries when the Accounting process runs.

After you associate revenue discounts or surcharges with a contract line and save the Revenue Allocation page, the system runs combination editing to verify that the revenue distribution that you entered for the discount or surcharge is valid.

For contract lines with a price type of rate, enter discounts on the Related Projects page.

For contract lines with a price type of recurring, the system does not allow discounts and surcharges.