Discount Accounting item level

ERPNext
,
1

I’m facing an issue with Discount Accounting in ERPNext and need clarification if this is expected behavior or a bug.

Scenario:

  • Item Price List Rate = ₹100
  • In Sales Order, I manually set Rate = ₹400
  • ERPNext automatically sets Discount Amount = -300 (due to rate override)

Then:

  • I apply 2% discount on the item
  • Expected discount = ₹8 (2% of 400)

However:

  • ERPNext adjusts the Discount Amount from -300 to -292
  • When creating Sales Invoice with “Enable Discount Accounting” checked,
    the system posts ₹292 to the Discount Account instead of ₹8

Issue:

ERPNext seems to treat the rate override (markup) as a negative discount,
and when applying a discount %, it adjusts this value instead of calculating
the discount independently.

This results in incorrect GL posting for discount.

Expected Behavior:

  • Discount Accounting should only consider the actual discount (₹8)
  • Markup (difference between price list and rate) should not be treated as discount
1 Like
What is the difference between Rate & Price List Rate
2

@DakshKothari18

Please refere to What is the difference between Rate & Price List Rate - #3 by DakshKothari18

The documentation may help as well.

1 Like