I have sales order with a revenue arrangement. a discount item line has been applied to the sales order. on the revenue arrangement record there is discrepancy between the revenue amount and the discount sales amount. why is this ?

AI generated answer (using internal Slack threads):

The discrepancy between the revenue amount and the discount sales amount on the revenue arrangement record could be due to the way NetSuite handles discounts and revenue recognition. When a discount is applied to a sales order, it is typically treated as a separate line item rather than being directly attributed to the item it is discounting. This can cause challenges when trying to calculate gross margin, as the discount is not directly tied to a specific item or class. Furthermore, when it comes to revenue recognition, NetSuite typically recognizes revenue from the invoice or cash sale created from the sales order, not the sales order itself. This is because a sales order is a non-posting transaction that expresses a commitment to ship goods or perform services, but has no accounting impact until items are shipped and an invoice or cash sale is created to bill the customer for the items. Therefore, if you're in the middle of a revenue recognition period and looking at a sales order, the line items might show 100% of the item price as the "Amount Recognized", even though the actual revenue recognized (as shown at the header level) might be less due to the discount applied. Please note that this is a general explanation based on standard NetSuite behavior and your specific setup or any customizations could affect this. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******