I use Quickbooks Pro 2021. When we apply a vendor discount, the discount is going to a Rebates/Cash Discount expense account. I don't understand why the discount amount is a positive number as this increases expenses - it seems like the discount should decrease expenses. I've attached a pdf with some screen shots.
A vendor discount means you paid less than what was owed. It should reduce the cost of what was paid for, BUT QB is incapable of doing that. As a result the discount amount is, or should be, posted as income to the company.
Vendor discounts help the vendor get his money quicker, but it does add income to your company - your choice
When I change the discount to an income account, the amount is negative which is the opposite of what I expect because it is decreasing income instead of increasing income. It makes me wonder if Quickbooks Pro 2021 has a bug.
I am not sure where you are looking to see this negative. If it is with the chart of accounts then I suggest you change that to the P&L and look there. The P&L is less confusing and easier to understand.
I use Other Income for vendor discounts on the rare occasion I use them
I figured out the problem. The discounts with the wrong sign are correct because they are AR discounts instead of AP discounts. Thanks to all for their thoughts.
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