Is there a way to categorize discounts as income

Hi there, morganreporting.

Yes, discounts can be categorized as income. You might want to create an Income account for the discount. Then, create an item for the discount to be applied against the vendor bill. Here's how: 

1. Open your Chart of Accounts and press CTRL + N. 
2. Select Income and click Continue.
3. Enter an account name and other details.
4. Click Save and close.

When paying the vendor bill, go to the Expenses column and look for the Discount account. Then, enter a negative amount if you want to use it against the bill.

Please reply to this thread if you have follow-up questions. I'll get back to you as soon as possible. 

this is not a discount

this is commission earned, and is income

create the commissioned earned income account

on the contractor check/payment

line one, the expense account you use to pay the contractors that is mapped to the 1099, enter the full amount due

line two, the commission earned income account, calculate the amount and enter as a negative number

QBO does not do percentages the way desktop does, so you have to calculate the amount

I think you should ask your own CPA, because I read it like this:

"I pay several independent contractors from checks I receive from the customers we do business with."

You make a Sale to the customer. That is your Gross Revenue as Income.

Then you Pay the vendor name and that is your Gross expense. This also gives you the info for 1099 reporting, and profit reporting.

"I receive a 10% commission on customer payments under $750 and 15% commission on invoices over $750."

The difference between Sales and paying contractors is your Profit.

Or, these are not sales to "customers" for you. The Contractor actually is your Customer in QB.

If you have no Trust Account requirement, this is your Gross income when you first get those funds from the customers.

The Discount Function in QB makes out of balance sales reporting. I would recommend you never use it; You need transactions with Names on them.

You really need to ask your own CPA. Review your operations and activities with them, to learn what is Gross Sales, amounts paid to contractors, the 1099-Misc reporting that applies to you, etc.