New TAS senior here. Client told us that they want to present a proforma adj for a customer that used to receive a discount and now doesn’t (terms went from 3% net 30 to net 75 in 2025). Is it that simple to just add back the discount or is there something else I’m missing? Thanks!

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^ useless comment, although I’d say it is important to feel comfortable enough to ask these questions internally.

As for the addback rationale, going purely off of what you told us, PF treatment could be warranted if the discount truly went away (I.e., was contractually agreed to and now expired). The grey area is that it could be overly generous to simply remove the discount, because there’s no way to know if the customer would have had the same level of sales volume historically had the discount not been in place. If there was a minimum purchase agreement and volumes were locked in, then that’s a better argument. But assuming you’re on the sell side and this is a management request, if I’m on the buy side, I’d reverse this all day long unless there’s some definitive way to estimate what volumes would have been without the discount.

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You can look at how sales have been trending prior and after the change and if gross sales to this customer has not meaningfully changed after the discount had gone, then it might help to justify the adjustment.

ask ur manager?

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