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r-goodrum
Level 1

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

 
Solved
Best answer July 20, 2020

Best Answers
Charies_M
Moderator

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

It's nice to have you here, r-goodrum.

 

You can the Discount Percent or Value feature to apply early payment discounts to your customers. Since discounts are not yet automatically calculated, you'll need to manually apply it on your invoices.

 

Before that, we'll want to turn on the Discount feature from the Account and Settings page. I'll show you how below:

 

  1. Click the Gear icon.
  2. Select Account and Settings.
  3. From the left menu, select Sales.
  4. In the Sales from content section, click the pencil icon to edit.
  5. Put a check mark in the Discount checkbox.
  6. Click Save, then Done.

Once done, you can then apply it on the invoice. When your customer pays early, you can go back to the invoice and apply the discount to zero out the balance.

 

Here's how:

 

  1. Go to the Sales menu, then choose the Invoices tab.
  2. Locate the invoice that was already paid but with a remaining balance.
  3. On the lower right of the invoice, click Discount Percent (value).
  4. Enter the early payment discount amount, then Save and Close.

 

You can also visit this guide about adding discounts to invoices in QuickBooks Online (QBO): Add a discount to an invoice or sales receipt in QuickBooks Online.

 

Feel free to comment below if you have further questions. I would appreciate the opportunity to help you with your concerns.

View solution in original post

6 Comments 6
Charies_M
Moderator

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

It's nice to have you here, r-goodrum.

 

You can the Discount Percent or Value feature to apply early payment discounts to your customers. Since discounts are not yet automatically calculated, you'll need to manually apply it on your invoices.

 

Before that, we'll want to turn on the Discount feature from the Account and Settings page. I'll show you how below:

 

  1. Click the Gear icon.
  2. Select Account and Settings.
  3. From the left menu, select Sales.
  4. In the Sales from content section, click the pencil icon to edit.
  5. Put a check mark in the Discount checkbox.
  6. Click Save, then Done.

Once done, you can then apply it on the invoice. When your customer pays early, you can go back to the invoice and apply the discount to zero out the balance.

 

Here's how:

 

  1. Go to the Sales menu, then choose the Invoices tab.
  2. Locate the invoice that was already paid but with a remaining balance.
  3. On the lower right of the invoice, click Discount Percent (value).
  4. Enter the early payment discount amount, then Save and Close.

 

You can also visit this guide about adding discounts to invoices in QuickBooks Online (QBO): Add a discount to an invoice or sales receipt in QuickBooks Online.

 

Feel free to comment below if you have further questions. I would appreciate the opportunity to help you with your concerns.

View solution in original post

r-goodrum
Level 1

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

Exactly what I needed, many thanks.

tfhadmin
Level 1

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

It would help if this article was ACCURATE...it's not!

 

Find the Discount percentage or amount in the lower RIGHT...not LEFT corner of invoice. Please include this info or fix the advice. No one likes wasting time to find the RIGHT answer when WRONG info is presented.

Rasa-LilaM
QuickBooks Team

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

Thanks for joining this thread, tfhadmin


I appreciate following the steps shared by my colleague and letting us know the result. Aside from improving the product’s features, we do the same thing with our line of support and knowledge articles.


Your voice is important because it guides us on what areas we need to improve. Please know we already updated the steps shared on this thread to ensure accuracy of instructions.


I’m adding a link to help with your future tasks. It contains resources to guide you on how to perform each one in QBO.


Feel free to visit the Community again if you have any other concerns or questions. I’ll be right here to answer them for you. Have a good one.

pcho
Level 1

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

Can you tell me how the discount feature can be turned on for QB desktop?

 

Thank you

Jovychris_A
QuickBooks Team

How do i account for early payment discount on customer invoices, so not to leave an outstanding balance?

You won't have to turn on this feature, @pcho.

 

Simply create a discount item in the Item List and then you can apply this to your sales invoice that requires a discount.

 

Let me show you how:

  1. Go to the Lists menu and then select Item List.
  2. Click the Item button at the bottom of the Item List window.
  3. Select Type, then choose Discount.
  4. Type a name to identify the discount and provide a discount description.
  5. Type the rate or fixed dollar amount in the "Amount of %" field. Type a percentage with the "%" field after the number or you may leave this field blank and apply the percent or fixed amount into the invoice.
  6. Select the income account for the applied discount. and enter other details.
  7. Click OK.

Then you can apply the discount on a sales invoice. I've added a screenshot as your reference.

 

If you want to apply a discount against all items, you can create a Subtotal type item list and add it as a line item on an invoice.

 

Here's how:

  1. In the Item List window, click Item and then select New.
  2.  Choose Type, choose Subtotal.
  3. Click OK.

 

Then you can follow the screenshot below on how subtotaling all items apply the discount against all items in the invoice.

 

I've added a reference for more information about adding discounts in your sales forms: Create an invoice in QuickBooks Desktop.

 

If you want to edit the items in the list, you can reference this article for the detailed steps: Add, edit, and delete items.

 

Feel free to place a comment if you have additional questions. I'll be right here to help. More power to you with your business!

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