Showing results for 
Search instead for 
Did you mean: 
Luis Dominguez
Level 1

Early payment discount - Auto entry



There any way that when I am entering a payment before customer invoice due date the discount automatically is creating and applying?


I have only see two ways:


- Apply manually the discount in the invoice when you receive the payment. Which is a problem if you receive the payment in the next month and the previous month when the invoice was issued is already closed. So, if you edit the invoice you are editing your sales in PL statement.


- Or creating a journal entry or credit note for the discount.



3 Comments 3
Level 7

Early payment discount - Auto entry

Hi Luis


In QBO there is no method to automatically process the discount; however, it is pretty straight forward.

1. When receiving the payment on the invoices, receive it into 'undeposited funds'; in this way when you go to create your bank deposit later, it will give you some options.

2. Go to New-> Deposit, and select the amount from the supplier as above for the received invoice; then below you can add the discount amount as a separate line; this leaves the payment and original invoice in tact, and allows you to see the discount separately.


Hope this helps!


QuickBooks Team

Early payment discount - Auto entry

Hi Luis Dominguez,


I see LeithG has provide some valuable information for you.  In addition to that, in QuickBooks Online you can add  a discount to the subtotal as a percentage or value.  You can also add it as a line item.  Once you create a Discount item, it can be applied to invoices, estimates or sales receipts.  Here's a helpful guide for your reference.


Feel free to reach out anytime you have questions.  We're happy to help!



Luis Dominguez
Level 1

Early payment discount - Auto entry

As an early payment discount you can not send the invoice with the discount already applied. Since this would be required just if the customer pays the invoice before certain date.

Need to get in touch?

Contact us