Discounts on invoices are taken once the invoice is paid. The discount distribution lives on the check record as opposed to the invoice record.

To distribute discounts to the debit account from the invoice(s) being paid:
  1. Open the invoice record
  2. Select the GL Distribution tab
  3. Mark the Distribute discounts to debit (expense) account(s) from invoice checkbox

To make the above option a default on the vendor record:
  1. Open the vendor record
  2. Select the Distribution tab
  3. Mark the Distribute discounts to debit (expense) account(s) from invoice checkbox
With this checkbox marked on the vendor record, the Distribute discounts to debit (expense) account(s) from invoice will default to checked on all invoices for this vendor

If the box on the invoice record is not marked to distribute discounts, the system will automatically pull the discount account from within Configuration > Default Accounts > Discount.