Applying discounts to payment on equipment

Thank you for checking in with us, rjh2.

I'm here to provide you with information about setting invoice discounts in QuickBooks Online.

In QuickBooks Online, you can set a discount as a line item on the invoice. However, I'd suggest consulting an accountant to help and guide you on which account to use for invoice discounts payments. Your accountant can provide more expert advice in dealing with this concern.

You may find this article helpful: https://quickbooks.intuit.com/community/Income-and-expenses/Discount-as-line-item-on-invoices-and-sa....

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Feel free to get back to me if there's anything else you need. I'll be around to help. Happy Holidays!

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@Anonymous wrote:

I have a customer who purchased equipment for my business. 
since then, each of his invoices included a discount to pay them back for purchase. Equipment is paid off. 

The equipment is entered under fixed assest. How do I set those invoice discounts to go towards payment for the equipment?

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What this amounts to is that you borrowed money to buy a fixed asset.

set up the fixed asset account, and the liability account for what you borrowed, make a new entry in the liability account for the full amount and use the fixed asset account as the expense (reason) for the loan

You pay back the loan from sales (in QB invoice is sales, bill is purchase)

create a service type item called asset payback or something, select the liability account on the item screen.

enter the sales invoice for the full amount
create a credit memo, use that asset payback item and enter the amount, apply the CM to the invoice and receive the balance due