I distribute a product on a set amount per case. The supplier gives the buyers a volume discount. How do I set up the discount account when paying the supplier? This is what I use now:
COGS - Inventory COGS - Discount item on my invoice
COGS = 100.00 (my cost) 10.00 (my margin) 30.00 (discount to customer) 30.00 reimbursable from supplier
COGS -Would I use this account to apply the discount from the supplier to reimburse my sales? Or is it considered an expense/income account? Which account should be used to reflect the supplier discount?
Thanks for any advice you can give me.