Purchase Discounts: debit or credit?
Purchase Discounts increases on the credit side and decreases on the debit side: its normal balance is a credit.
A contra-expense account reduces an expense, such as purchase returns or discounts received. It increases with a credit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Purchase Discounts |
| Spain (PGC 2007) | 606 Descuentos sobre compras por pronto pago |
| France (PCG 2025) | — |
| Germany (generic accounts) | Lieferantenskonti |