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Level 2

Customer deductions from Invoices


I am using Quickbooks online Plus.

I sell herbal teas to grocery stores.  Basically I sell them to a company that distributes our products to the grocery store.  When I send them an invoice, they send me a check for that amount minus a lot of fees like, spoilage, marketing, chargebacks, etc.  So let's say I invoice them for $2000 and I receive a check for $1200.  The $800 they took out show up as 5 or 6 line item deductions.  Example $100 Chargeback, $100 spoils, $200 Freight, $200 initial set up fee, $200 marketing fee.

So my invoice is for $2000, but I get a check for $1200.  How do I go back to my invoice and add the charges they took out?  I want to break down the charges into appropriate categories.  Sometimes they send me a check for like 2 or 3 invoices with all the fees and that is a big headache for me.  
Can I make the customer into a vendor also and have their charges as bills and use the bills to adjust the invoices?  Any help would be appreciated.  Thank you

3 Comments 3
QuickBooks Team

Customer deductions from Invoices

Hello there, @smomin


Thank you for posting in the Community. The Form W-2 for 2020 is already available in QuickBooks Online Payroll Premium. You can find this form under the Forms section in your Payroll Tax tab. Let me show you how:


  1. Go to the Taxes menu and select Payroll Tax.
  2. From the Forms tab, click Annual Forms.
  3. Look for the W-2 tax form and click it to open. 

For more details in viewing and printing payroll tax forms, check out this article: How to view and print copies of your payroll tax forms (such as W-2, 941, 940, state withholding, an....


If you have more questions about W-2, you can check this link: Get answers to your W-2 questions.


I'm just a reply away if you have other questions with the QuickBooks Online Payroll. Just add the details of your concerns in this thread and I'll help you out. Wishing you continued success in your business.

Level 1

Customer deductions from Invoices

In many cases, the customers remit less than the invoiced amount due to various reasons for withholding part of the payment. Amounts so withheld are called deductions. It's important to understand deductions in your company and how it can be controlled for better future

Level 4

Customer deductions from Invoices

I use a desktop version but think you can do the same. I update the invoices with those charges as negatives. You can have the items related to accounts within QB, so the costs will appear as costs in your final accounts.

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