When entering a bill, how can I set up terms - like 2% Net 30? If the bill is paid within 10 days it takes the 2% off the bill automatically.

Yes, Ruth, you're correct. QuickBooks Desktop offers a Payment Terms feature that automatically applies discounts for early bill payments. While this specific functionality is unavailable in QuickBooks Online, there's a way to achieve your goal effectively.

We can manually modify and adjust the bill by adding the 2% discount as a separate line item. After making this change, we will mark the transaction as paid with the amount applied.

First, let's create a discount item by following these steps:
 

1. Go to the Sales menu. Click Products & services.
2. Pick New, then choose Service.
3. In the Name field, enter your preferred term. (Ex. Bill Discount)
4. Input the 2% as a negative value in the Cost field, as this represents a deduction from the total amount of the bill.
5. Select the account you'd use to track the discount.
6. After completing all details, Save and Close.
    

Now, let's open the bill and manually enter the discount item:
 

1. Head to the Expenses tab, then click the bill you want to modify.
2. From the Product/Service dropdown, pick the discount item you created.
3. Once done, Save.
    

Afterward, you can record the bill payments to ensure your financial records are accurate.

Moreover, I recommend exploring our QuickBooks Live Expert Assisted to improve your efficiency in managing vendor transactions. Our team can help you streamline your operations, address any specific issues you may face, and implement best practices that enhance your overall financial management.

Furthermore, you can generate an Unpaid Bills report to track outstanding payments in the future.

Once you follow the steps above, you can take off 2% of the bill. I'm here to help clarify any aspects you may be uncertain about or to provide additional guidance as needed.