Discount or Subsidy Accounting


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Greetings All, privileged to be here. I am working in non profit organization. Here discounts are given to individual as assistance to kidney failure patients against Dialysis Charge. Major revenue sources are: Dialysis Charge, Lab Test, Fistula implant etc. Other revenue sources are: Donations, sponsors , grants etc. Are discounts are expense? I record it as expense. Want to know m I going to right direction?
 
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kirby

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Discounts should be recorded as a contra-income account. So set up an income account and use it t hold the debits from the discounts. So your income statement looks like:

Revenue $10,000
Discounts <$2,000>
Net Revenue $8,000
 

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