The Accounting Treatment Applicable To Discounts Made In Trade Activity

In a competitive market environment, the activity of conducting transactions of sale involves operating with discounts, which may be granted by suppliers to customers, these reductions quantify the existing confidence between the two partners, the business volume, the quality of goods. The literature in the field and the business practice operates with two types of discounts: trade discounts and financial discounts. Given that, often in practice is not always a clear distinction between the two categories of discounts, since the invoices are often entitled with “discounts”, the main objective of the work focuses on delineating the two categories of discounts, highlighting the applicable accounting treatment according to the Romanian accounting regulations in force (Order no. 1802/2014, valid from 1 January 2015 and Order no. 4160 of 31 December 2015 amending and supplementing certain accounting regulations valid from January 12, 2016). Thus, taking into account these regulations, in doing this work will be presented in detail issues concerning amendments and clarifications on the procedures for registration of price discounts by applying the accounting treatment prescribed.