Discount on sales comes under which accounting type?

It is under management accounting.

Basically sales discount are of 2 types,:- trade discount and cash discount.  It's either booked in gross sales presentation type or net sales in presentation. It depends on the amount they carry for  a period. And the management requires in its reports for its materiality. 

 

 

It mainly use in Income statement with net sales,gross sales,cash,sales discount

Thanks for invitation,

When a payment arrives with a recognized sales discount, recording it accurately is essential. The amount paid on the invoice is recognized as revenue, while the discount amount is posted to a sales discount ledger account. The entry reflects a debit to "Cash" and "Sales Discounts" with a credit to "Accounts Receivable." 

Discount on sales is a debit account Dr. Cash or A/R Dr. Discount permitted Cr. Sales And visa versa But first you have to identify which type of discount it, if it will be as a trade discount (quantity discount This type without entry but you will record your sales revenues and A/R net of the trade discount The other type is cash discount and it has two method gross method or net method, the first one Gross method will record your gross sales and when the customer will pay the bill in the date within the discount days you will divide the A/R to cash and sales discount taken or permitted If not you will record your sales without any discount The second one - net method You will record A/R as netted of the discount If the customer paid the bill within his discount date Your entry will be as Dr. Cash Cr. A/R If he not Your entry will be as Dr. Cash Cr. Sales discount not taken Cr. A/R

it depends on where you stand.  if you initiate the sales, it is a contra account of your Sales.  if you are a buyer, the amount of discount you get is a contract account of your purchase.  this is in a trading type business.

Discounts may be offered on sales of goods to attract buyers. Discounts may be classified into two types:Trade Discounts: offered at the time of purchase for example when goods are purchased in bulk or to retain loyal customers.Cash Discount: offered to customers as an incentive for timely payment of their liabilities in respect of credit purchases.