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Apply a discount to a supplier bill

How can I add a discount to a suppliers bill for early order discount?

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Best answer March 11, 2019

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Highlighted
Level 1

Apply a discount to a supplier bill

I asked a question similar to yours and found the following answer. Hope it helps

______________

@ Jay
There two kinds of vendor discounts, sales and early payment
You do NOT enter a discount for a sales discount, you enter the actual amount paid
Early payment discounts, like when you get 2% off if paid in 10 days, are different. QBO makes this harder than it should be. An early payment discount is income to your business.
In pay bills, click on the bill to bring it up, on the next line select an income account (create one called early payment discount to make it self explanatory) in the account block, calculate and enter the calculated amount in the account block as a negative number, save.
then back in pay bills pay the bill.
As I said QBO makes this harder than it should be, and harder than it is in desktop


View solution in original post

7 Comments
Highlighted
Level 1

Apply a discount to a supplier bill

I asked a question similar to yours and found the following answer. Hope it helps

______________

@ Jay
There two kinds of vendor discounts, sales and early payment
You do NOT enter a discount for a sales discount, you enter the actual amount paid
Early payment discounts, like when you get 2% off if paid in 10 days, are different. QBO makes this harder than it should be. An early payment discount is income to your business.
In pay bills, click on the bill to bring it up, on the next line select an income account (create one called early payment discount to make it self explanatory) in the account block, calculate and enter the calculated amount in the account block as a negative number, save.
then back in pay bills pay the bill.
As I said QBO makes this harder than it should be, and harder than it is in desktop


View solution in original post

Highlighted
Level 1

Apply a discount to a supplier bill

Thank you for your answer!  This helps!!!
Highlighted
Level 1

Apply a discount to a supplier bill

What an omission - no simple settlement discount method - I have made a mistake using is system
Highlighted
Level 1

Apply a discount to a supplier bill

I have a client who purchases wholesale items for example for an invoice with 9 different items she sales retail her entire invoice totaled 301 for wholesale subtotal next line item is discount of $75.25, how would I apply this? Would I just divide the $75.25 by the 9 different items and change that price for the inventory? I am using inventory tracking and have the purchase rates already put in.
Highlighted
Level 1

Apply a discount to a supplier bill

Thank yoi for the tip!  You’re right QB makes it more difficult. I liked the way it’s handle on desktop version... 

Highlighted
Level 1

Apply a discount to a supplier bill

QBO needs to fix this because when you print the cheque to pay the bill with the discount, it doesn't display the original invoice amount nor the discount taken. This is really unprofessional! Why does QBO treatsit as an income as a reduction of expense, which is the right way of doing it???

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QuickBooks Team

Apply a discount to a supplier bill

Hi beilan_gao,

 

When suppliers offer discounts it's important to be able to accurately track them so that your books balance. QuickBooks Online offers a couple different solutions for tracking supplier discounts to make your job easy! Let me explain the options.

 

The first option is what our Community member @mikelovell outlined in his response above. You can represent the discount as a line item on the bill categorized toward an income account. You'll want to enter it as a negative amount, then when you pay the bill you'll notice the amount owing reduced by the amount of the line entered. 

 

The other way to go about this is to enter a Supplier Credit to apply to your bill payment in the amount of the discount. To create a supplier credit, please follow the steps below: 

 

  1. Select the + New button in the upper left corner.
  2. Choose Supplier Credit.
  3. Select the supplier that has issued the discount from the Supplier dropdown.
  4. Enter the corresponding Category details and Line details. In this case you could just make note that this is a Supplier Discount.
  5. Select Save and close

 

The article linked below includes the steps you can follow to enter and apply the credit to a bill:

 

 

If there's another method for recording a supplier discount that you'd like to see added to QuickBooks Online, I encourage you to Submit Feedback. Our product development team wants to hear from loyal customers like you. Go to the Gear icon, then Feedback to let them know what new and improved features you'd like to see.

 

Enjoy the rest of your day!