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Join nowHi there, @cchills.
Once the Discount feature activates in your QuickBooks Online (QBO) account, QuickBooks automatically creates a discount account on your register. To verify the discount account that goes when you turned on the discount feature, here's what you'll need to do:
Also, when running a report, there are two types of accounting methods in QuickBooks Online. These are Accrual Basis and Cash Basis.
Accrual basis
Cash basis
Given the information above, you can now select which accounting method works best with your business. Additionally, depending on how you set up the discount item, the discount item should be included in your Profit and Loss Report. Usually, it is displayed right below the Other Income section.
You can also visit this guide about adding discounts to invoices in QBO: Add a discount to an invoice or sales receipt in QuickBooks Online.
Let me know if you have questions by leaving a comment below. I'll get back to you. Take care and have a great day.
I'm not new to Quickbooks and I did read the online documentation before working with Discounts on Invoices.
I'm saying that the Discount account was NOT created when I turned on Discounts. I looked, its NOT there. It was NOT created.
I do know the difference between Cash and Accrual basis. The only way we're seeing the discount we put on these invoices is if we use the Accrual basis and its showing up in Miscellaneous Income. Its NOT showing up in a Discount account, its NOT showing up in Other Income.
Its NOT working in our system. I tried calling support on Friday, but got a support tech who had to keep putting me on hold to ask someone else questions. She also kept telling me how it should work and in screen sharing I showed her that it was not working that way in our system. The last time she put me on hold I gave up after 30 minutes.
I can see what you've been dealing with to get this far, @cchills.
Once you turn on discounts in QuickBooks, the discounted sale or item will allocate the amount into its default Discount given account. You're correct that this will touch income accounts.
Furthermore, you'll want to check the transaction journal in the invoice or sales receipt to view what account discounts show up. From there, you'll see the amounts will indicate the account where it is tracked. In that manner, you'll know why this is posting to a different account.
Here's how:
Also, if you added discounts as service items in invoices, you can change the income account to where you want discounts to be tracked by following these steps:
On the other hand, this shows up in the unspecified class when the discount item has no class assigned. To correct this, edit this item by following the steps above and then add its class.
However, if the discount amount still set in the Miscellaneous Income account, I'd suggest contacting our Care Support team one more time. They'll have the tools to look at this and report this to our engineering team to be fixed.
I've added some articles for you to look up to about this topic:
Change the account for a product/service item.
Add a discount to an invoice or sales receipt in QuickBooks Online.
I'm looking forward to seeing your updates here. If you have other questions in mind, please let us know to clear them up for you. Have a bountiful day ahead!
Right, so as I said, I started with the documentation. The system did NOT create the Discounts Given account.
I went to Sales/All Sales, but I don't see a More option. oh well.
As I said in my original post, I called support before my post and got nowhere. And around and around I go! wheeeee!
Thanks for the prompt reply, @cchills. I'm here to clarify a few things about the Discounts in QuickBooks Online (QBO).
As my colleague, Jovychris_A shared above. You can check the transaction journal on the invoice or sales receipt to see if any account discounts exist. The amounts will reflect the account where they are tracked from there. You'll be able to figure out why this is posting to a different account.
Follow these steps to proceed:
Furthermore, ensure that you have the correct settings as my colleagues have mentioned above. Also, for more details about adding a discount to an invoice or sales receipt, kindly visit this article.
Additionally, you can use this article once you receive payment from the customer: Record invoice payments in QuickBooks Online.
It'll always be my pleasure to help if you've got additional questions about Discounts in QBO. Use the Reply option below and surely I'll be here ready to assist you. Take care and stay safe!
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