Review or Create a Discount Item

Discount items in NetSuite Point of Sale (NSPOS) are used to map promotion discounts for accounting purposes. They provide methods for managing your accounting and tracking needs, including:

• How the discount affects sales tax.

• Where the discount line item should post.

  For example, a Discount Item named Percent Off 20% is set up and selected for a promotion. If the promotion using this Discount Item is Promotion Type % Off and the % Off is set to 20, an item marked at $50 will sell for $40 during the promotion period. The promotion sales invoice flows into NetSuite as two line items – the original price of $50 and a discount line showing $10. Your Accounting team can determine how to apply each of these line items.

You must select a Discount Item when you create a promotion. Discount Items typically match the discount offered in a promotion, such as:

• Amount Off

• Percent Off

• Price Override

• Transaction Amount Off

• Transaction Percent Off

Discount items are reusable, and include:

• An Item Name/Number that is easily identified for adding to new promotions, filtering in reports and using in searches.

• A Reduction Type, such as Amount Off, listing how the discount is applied.

• The Rate or discount amount to be applied, such as $2.00 off. When used with RA-Promotion custom records for NetSuite POS, the discount item Rate is informational only.

It is not necessary to set a Discount Item for each amount off or percent off amount you may need. If your Accounting team does not require detailed naming for discount line items, you can use one of the default Discount Items with a rate of 0.00. The promotion parameters set the actual discount amount.

Note:

Discount Item records are not inventory Item records. Note also that the Do not allow discount choice on inventory Item records has no effect on NSPOS promotions.

To review current Discount Item records:

1. Log in to NetSuite ERP as an administrator.

2. Go to Lists > Accounting > Items.

3. Review the list for a Discount Item that meets your needs, such as Amount Off or Percent Off.

4. If a Discount Item matching the discount type needed for your promotion does not exist, follow the next steps to create it.

   You can reuse Discount Items in other promotions.

To create a new Discount Item record:

1. Log in to NetSuite ERP as an administrator.

2. Go to Lists > Accounting > Items > New.

3. Click Discount.

4. In the Item Name/Number field, enter a descriptive name. You will see this name as a discount line in transaction records generated from the discount in NetSuite. You will also select this when creating the promotion record.

   For example, if you are creating a summer promotion with a 10% off discount, you can name the discount Summer Sale 10% Off.

5. Enter the discount Rate to be applied. The rate can be either a percentage or dollar amount. A percentage discount must be followed by a % sign. A dollar amount should be entered as a positive number.

   For example, enter 10% for a Percent Off the regular price, 5.00 for an Amount Off. For a Price Override, set the Rate at 0.00.

   

6. Under RA Custom Fields, for Reduction Type, select the type of discount to apply:

   • Amount Off to apply a flat discount.

   • Percent Off to discount the item price by a percent.

   • Price Override to replace a current price with a new price.

     Note:

     If you are creating a complex promotion (BOGO or Mix and Match), select the discount type to apply to the bonus item.

     Example 1: If the promotion is buy one, get one at 50% off, then select Percent Off.

     Example 2: If the promotion is buy two and receive a third at a reduced price of $10, select Price Override. The bonus item will be set to $10.00 no matter what its current price is.

   • Transaction Amount Off to apply a flat discount to the transaction total.

   • Transaction Percent Off to discount the transaction total by a percent.

   

7. On the Accounting subtab, under Accounts, select Non-posting if you want this discount to be non-posting.

   Or, select Account and choose the account to which you want the discount to post.

   Note:

   Accounting settings for discounts triggered by a promotion may be very important to your company. If you are unsure how to proceed, see Discount Items online in NetSuite and consult your accounting department before assigning these values.

8. Select the Tax Schedule to apply to this discount. Check the Apply Before Sales Tax option if applicable.

   Important:

   How discounts modify the calculation of sales tax collected is very important. If you are not sure how to proceed, see Applying Sales Tax or VAT to Discount Items in the NetSuite Help and consult your accounting department before assigning these values.

9. Click Save.

The steps above describe setting up Discount Items for use with NetSuite POS Promotions. For more information about Discount Items and their impact on transactions – including the other optional fields on this screen – see Discount Items in the NetSuite Help.

Related Topics

Creating a Promotion

Create an Advanced Promotion Record

Create a Classic Promotion Record

General Notices