Discounts given account and problem with duplication of discount

Hello, KSW2022.

I appreciate the detailed scope of the issue at hand. I'll ensure you'll be able to record your sales invoices with the discounts properly in QuickBooks. 

Given that the daily sales invoice is recorded correctly with the discount, let's create an expense entry to account for the discount coverage. Simply click on the + New button then select Expense. 

Select the account where you want to track the discount coverage under CATEGORY. Then, enter the coverage amount under AMOUNT.

If you're unsure what account you need to select, I would recommend consulting an accountant. This way, they'll ensure your books are accurate and correct. 

Then, match the payment with the expense entry in the Banking page. 

Although, another option would be is to exclude the discount coverage (the merchant bankcard service withdrawal) from the Banking page. Then, manually clear the sales transaction in the bank register within QuickBooks. 

To exclude the transaction from the Banking page, simply check the payment record, then click Exclude. 

Then, let's clear the sales transaction entry in the bank register:

1. Go to your Chart of Accounts.
2. Find the bank where you deposited the funds.
3. Click View register.
4. Find and select the sales entry.
5. Under the check mark column, click the box until a C appears.
6. Once done, click Save. 

After ensuring all of your entries are correct, you can reconcile your bank account. If ever you need help in the future, check out this article for a guide: Reconcile an account in QuickBooks Online. 

If you have any other concerns regarding your sales transactions, let me know and I'll gladly help you out. I'll also cover topics such as reports, entering other records, and managing your lists. 

Thank you for the reply. 

Your suggestion, if I am understanding it correctly, would add an additional expense, which is what I don't want to do. I need to be able to match the payment to merchant bank with the invoice that has the discount on it. 

because the payment can only be matched to an expense, that won't work. I cannot exclude the payment as I need it to balance my cash, so there is my issue. how do i record the payment without creating a duplicate expense?

Good afternoon, @KSW2022. 

Thanks for coming back and asking more questions about your problem. 

If you don't want to create a new expense, I'd recommend consulting with your accountant to be sure what would be best for your business. They'll be able to give you some advice on what you'll need to create to record these details successfully and correct for your books. 

Keep us updated on how the conversation goes with your accountant. It's my priority that you're able to put this in your QuickBooks account properly. Take care!