discount taken – NEWQBO.COM

How can I apply discount taken by a customer on payment received?

You will have to wait until you get to “Bank Deposit” tab to apply discount given against this invoice.

Let’s start the process:

#1 Receive Payment tab (Create + plus sign > Customers > Receive Payment)
Show full Invoice payment on “Received Payment” screen, but select Deposit to as “Undeposited Funds” account.
Note: Received Payment form is currently blank and incomplete at this time to handle other debit and credit adjustments if necessary.
Sending it to Undeposited Funds account (rather than directly to bank account) and make other adjustments (like Discounts taken or Merchant Fees) from Bank Deposits screen where they have “Add New Deposits” field

# 2 Bank Deposit tab (Create + plus sign > Other > Bank Deposit
Select Customer Payment
Go to “Add New Deposits” section
Account = Discount given (Contra Income Account type)
Amount = Discount Amount (Enter negative amount)
Check box “Track returns for Customers” and select Customer under Customer column (optional). This will help to track a discount taken by a customer.

QuickBooks Online: How can I apply discount taken by a customer on payment received

How to handle early payment discount taken to an invoice when a customer pays on time? Example: 1% 10, Net 30 or 2% 10, Net 30

In ideal accounting process, I would think handling discount taken by the customer would be part of “Receive Payment” form screen. They will have the additional line to enter discounts given to the customer as negative amount entered and thereby would match customer payment amount.

Since QBO Receive Payment screen is unable to handle this specific transaction, you will need way-around approach. No doubt, it is unnecessary and time-consuming steps to handle such a simple customer payment transaction.

You will need to create a CREDIT MEMO for early discount taken by the customer. See photo#3 for reference.

For one-time, you will also need to create new GL account for “Discounts given” (see photo 1) and new Service item for “Early Payment Discounts” (see photo 2).

Once you’ve created Credit Memo, go to Receive Payment screen, apply for payment against the open invoice as well as apply subtract early payment discounts to match customer payment. See photo#4 for reference.

See screenshot photo#5 for reference to how it will show Discounts given in P&L.

Need better way to handle discount taken by customer, add to QuickBooks Online Feature Requests here:

http://feedback.qbo.intuit.com/