Hi,

Can I use the same GL for purchase discounts and purchase allowances? What is the difference?

Thanks

Jeanne

Yes you can use the general ledger for these transactions.

A purchase is discount is a discount that is received when you pay your bill within a certain amount amount of time.

For example your invoice states 2/10 net 30.
This means you can take a 2% discount if you pay your bill within 10 days. If not you pay the full amount. If your bill is for $1,000 if you pay within the 10 day period you will pay $980.

The other account is called Purchase Returns and Allowances and it is used when you return all or part of your puchases.