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Lauren   October 6th, 2021   Uncategorized No Comments

You start the process by creating a discount agreement, followed by automatic or manual reservation of provisions, and you complete the process by making discounts. A detailed explanation of these steps follows. To grant discounts, the seller usually signs an agreement with the customer that contains all the necessary details, such as the agreed sales targets, the period during which these targets are to be achieved and the discount conditions such as percentage, unit dollar or lump sum. The seller then monitors the volume of sales made to the customer for the products eligible for the discount and regularly takes into account the discount provisions in accordance with the accounting principles of the organization. If the objectives are successfully achieved, the seller pays the amount of the discount to the customer. This step is called a discount count.

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