How to adjust short payment received from customer with discount amount and remove from overdue list of invoices

Hi there, nirpinder.

You need to record the short payments as bad debt and write them off. This will remove the transaction from the list of overdue invoices. First, check for other invoices considered as bad debt through the A/R Ageing report.

Here's how:

1. Click Reports at the left panel.

2. Select the search icon and type Accounts Receivable Ageing Detail.

3. Check which outstanding accounts receivable should be written off.

Once done, create a bad debts expense account. Please follow the steps below.

1. Click the Gear icon at the top right. Then, choose Charts of Accounts.

2. Select the New button to create new account.

3. Choose Expenses from the Account Type drop-down.

4. Select Bad debts in the Detail Type drop-down list.

5. Type “Bad debts.” in the Name field.

6. Hit the Save and close button.

After that, you'll need to create a bad debt item under Non-inventory. To do that, you can check this article: Write off bad debt in QuickBooks Online. This article also provides steps and information to finish the process.

Please check this article on how to record single or partial payments from invoice: Record invoice payments in QuickBooks Online. This article also has information on how to to group multiple payments together.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

early settlement discount

Thanks for joining this thread, 123145884581829.

To ensure that we're on the same page, may I know if you're trying to create an early settlement/payment discount? If so, you can turn on the Discount feature to easily apply a reduction to an invoice or sales receipt for prompt payment. I'll guide you how:

1. Go to the Gear icon, then choose Account and Settings.
2. Select the Sales tab on the menu.
3. In the Sales form content section, select the Edit icon.
4. Toggle the Discount option.
5. Click Save and then Done.

After that, go back to the invoice and apply the discount once your customer plans to pay you early. Here's how:

1. Select Sales from the sidebar menu.
2. Head to the Invoices tab.
3. Locate and open the appropriate invoice.
4. Below the Subtotal section, choose Discount percent or Discount value from the drop-down arrow.
5. Enter the discount amount
6. When you're done, click Save and Send so your customer will be updated with the changes on the invoice.

In addition, here's an article that you can read to be guided in entering customer payments in QuickBooks Online: Record invoice payments.

Don't hesitate to let me know if you need more help in handling your other sales transactions. Just add the details in the comment section and I'll get back to you.