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Discounts with payment enter quickbooks online

Can you enter a discount from a payment received in new year for an invoice in an old year to not change balance of old year? Is there a way to record a discount with the payment date and how? Would it be better to do a CM for date received payment? Right now they change original invoice, but that will change the early discount amount in old year. on a cash basis.

Thanks SF22

Best answer 02-26-2019 09:40 AM

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QuickBooks Team

Re: Discounts with payment enter quickbooks online

Welcome back to the forum, @sf22,

 

Allow me to step in and add some information about adding discounts to past invoices in QuickBooks Online.

 

If you're applying discounts to old invoices, you can use credit memo and apply it as a payment. You can follow AdrianRose_A's steps to get your work done.

 

Currently, QBO does not have an automated discount feature. You'll need to create an item for the discount then manually add it on the invoice. This option, however, involves editing the sales transaction which will update the total amount of the invoice from the prior year.

 

Before making any changes to your account, we always recommend consulting an accounting professional to get the best legal and accounting advice that works for your business type.

 

Please let me know if you have any more questions with QuickBooks. I'll be more than happy to check on you anytime.

6 Comments
QuickBooks Team

Re: Discounts with payment enter quickbooks online

Hi there, sf22.

 

Yes, you can create a credit memo and apply it to your open invoice from your old year.

 

Here's how:

  1. Click the Plus (+) icon, then choose Credit Memo.
  2. Fill out all necessary information.
  3. Select Save and Close.

Once done, you can now apply it to your open invoice.

  1. Select the Customer, then click the Receive payment link.
  2. Complete the fields.
  3. Under Credits, select Credit Memo.
  4. Select Save and close.

Let me know if you have further concerns. I'd be glad to help.

 

 

 

 

 

 

Frequent Explorer **

Re: Discounts with payment enter quickbooks online

Thank you very much Adrian, 

I am new to quickbooks online but not accounting. I did not want to mess up any prior year balances. So CM is the only way to take discount in current year with payment by applying? I just wasn't sure if quickbooks online had a payment feature discounts with accepting a payment from customer.  I appreciate your help. 

SF22

QuickBooks Team

Re: Discounts with payment enter quickbooks online

Welcome back to the forum, @sf22,

 

Allow me to step in and add some information about adding discounts to past invoices in QuickBooks Online.

 

If you're applying discounts to old invoices, you can use credit memo and apply it as a payment. You can follow AdrianRose_A's steps to get your work done.

 

Currently, QBO does not have an automated discount feature. You'll need to create an item for the discount then manually add it on the invoice. This option, however, involves editing the sales transaction which will update the total amount of the invoice from the prior year.

 

Before making any changes to your account, we always recommend consulting an accounting professional to get the best legal and accounting advice that works for your business type.

 

Please let me know if you have any more questions with QuickBooks. I'll be more than happy to check on you anytime.

Experienced Member

Re: Discounts with payment enter quickbooks online

I have a similar problem.  I'm on an accrual basis but report Gross receipts tax on cash basis for various states, which is not a problem.

 

My fiscal year end is coming up and I noticed that the Revenue income does not reconcile with the invoice less discount using accrual basis.  

 

If I do as you suggested of entering an Item account for the discount in the invoice, would this take care of my problem?  But I thought  by applying the the discount amount in the "Discount and Credit" would automatically do that?

 

It appears the Discount amount is not subtracted from the sales/invoice amount in the accrued P&L.

 

Are there any other suggestions or work arounds?

QuickBooks Team

Re: Discounts with payment enter quickbooks online

Thanks for joining the discussion, @AGordon.

 

Allow me to step in and help provide additional information about the discount amount applied to the invoice.

 

Yes, you can follow the workaround provided by my colleague @Jen_D. Just make sure to enter a negative amount for the discount so that it'll subtract the amount from the sales/invoice.

 

That should get you in the right direction. Let me know if you have followed up questions about the accruals in your P&L. I'll be here to help further if needed.

 

 

Experienced Member

Re: Discounts with payment enter quickbooks online

Oh I did make sure I used a negative, Lily, but now the cash basis P&L isn’t right. 

 

If I use the “Discounts and Credits” in the Customer Payments -cash basis P&L is perfect but not accrual basis P&L

 

If I do the work around of a negative amount in the invoice (and not use the discount module in payments) then the Accrual basis P&L works but not the cash basis P&L. 

 

Both methods start using a prorating formula, which I have encountered before when I used a negative amount in an invoice.  It took over 2 months for Intuit QB to figure that out.

 

Is there anything else I can do?

 

Alma