How to record discounts received from suppliers ?

Record a Vendor Credit. I prefer using an income account called Discounts/Refunds but you can also post as a contra-expense either to a group discount expense account or to the same expense account the bill is for. Then when paying bill apply the credit

But does this affect my COS , when is draw my reports I want the margin to be correct and to take in account the purchase price less the discounts.

Welcome to the thread, @MDM18.

In QuickBooks Online, having a discount from a vendor will not affect the Cost of Goods Sold (COGS) of the Inventory item. If you wish to get this affected, then you can create a journal entry that will affect the COGS and the vendor balance. 

To create a journal entry, here's what you'll need to do:

1. In the left menu, select the + New button.
2. Pick Journal Entry.
3. Fill out the necessary fields.
4. Choose Save and close. 

 However, before we proceed with the steps, I highly suggest consulting your accountant or accounting professional for guidance on which account receives the debit and credit side of the transaction.

Additionally, I want you to get the most out of QuickBooks for your business. You can check some articles that are designed to help you get acclimated with the software. They can be accessed at the following link: QuickBooks Tutorials.

If there's anything else I can do for you, let me know by commenting below. I'd be happy to further assist you. Have a great day. 

we have received a discount after the written cheaqu. discount received by cash.?

Hello there, @hashihnda2013.

You can enter a supplier credit to apply the amount on your next purchase. Or you may need to consult your accountant about the process since you've issued a check after you have been given a discount.

Here's how to enter a supplier credit:

1. Select the + New button and choose Supplier credit.
2. Enter the details and total discounted amount from your purchase.
3. Select Save and close.

To know more about the process, you can check out this article: Enter a credit from a supplier.

I've also added this article for your future task about tracking the specific aspects of your business: Run reports in QuickBooks Online.

Please don't hesitate to let me know if you need further assistance or questions. Just click the Reply button below. Take care and have a wonderful day ahead.

I tried that but I still have the discount showing out as an overdue. How do I zero it out?

Thank you

Thank you for joining the thread, @12121212. Let me help you with your concern regarding overdue discount in QuickBooks Online (QBO).

Can you tell me more about how you are recording the discount?

If the discount is given to your customer, you can edit the invoice and adjust the amount to apply the discount. You also have the option to add the (-) negative amount. This way, you’ll be able to offset the overdue amount.

On the other hand, if the discount is given by your supplier, you can edit the bill or enter a vendor credit.

Here’s how:

1. Click the + New button and select Supplier credit.
2. Enter the necessary details, the date, and the discounted amount from your purchase.
3. Select Save and close.

I also highly recommend consulting your accountant regarding this matter for expert advice.

The way you enter the credit depends on how you keep track of your purchases. You can also check out this article for more details: Handle supplier credits and refunds in QuickBooks Online.

In addition, I added this article for your reference when running a report in QuickBooks Online.

Let me know if you need further assistance with vendor credits. I’ll be happy to lend a hand to help. Have a wonderful day ahead!