Hello there, Katherine. Let me help you show a vendor discount when paying a bill.
When having a discount on paying a bill, yes, you can enter a discount item into a bill or make vendor credit for the vendor discount. I'll show you how to make a vendor credit:
- In your QuickBooks, go to +New.
- Click Vendor credit, and in the Vendor dropdown, choose your vendor.
- Enter the Category or Item details depending on how you record purchases with this vendor.
- If done, hit Save and close.
After that, apply the vendor credit you made to the bill:
- Select + New and choose Pay Bills.
- Choose a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
- Finish the rest of the fields like you usually do.
- Click Save and close.
On the other hand, I suggest scanning this article to guide you in tracking your bills and recording the payments in QBO: Enter and manage bills and bill payments in QuickBooks Online.
Comment below for more questions regarding discounts in paying a bill inside QBO. I'll be right back. Take care!