Vendor Early Pay Discount - Freight Allowance

Welcome to the Community, JKam.

I am happy to share with you the steps on how to add discounts to your vendor bills. This gets marked as an income since there is a price reduction instead of adding cost to the business.

Here's how:

1. Go to the Vendors menu. 
2. Select Pay Bills.
3. Choose the vendor bill. 
4. Click the Set Discount button.
5. Enter the Amount of Discount.
6. Select the Discount Account.
7. You can click Add New if the income account is not yet listed.
8. Click Done.
9. Click Pay Selected Bills.

You can also remove discounts for later payments. 

Let me know how it goes or if I can be of additional assistance. I’m always here to help. Take care and enjoy the rest of your day! 

Hi Ethl_A,

We already have vendor discount set up and have been using it.  The discount amount calculated by QB is based on invoice dollar amount and terms.  However, I need some of them to be calculated off of invoice minus freight allowance (if there is any).  The freight allowance is recorded on the invoice.
Please see original message that explains this as an example.

Thank you,
JKam

I've been dealing with this same problem for eight years now. Quickbooks isn't capable of it. My first accounting program for the mac could handle it in 1988. I have had problems with missing the freight deduction for years. I am now adopting a new tactic of entering the invoice net of the freight for the FFA as it is our normal practice of paying within terms. That way the discount is taken properly and the freight is already deducted. If the vendor has a problem with the freight deduction they will contact you.  I hope this helps.