We have customers that automatically apply a discount to our invoices so they actually pay less than what we invoice. How do we handle this without creating a journal entry? We would like to issue a credit memo, but it appears that credit memos are tied to an item, thus affecting inventory. Is it possible to create a credit memo that is not tied to an item/inventory? They also pay on 60 day terms, so the A/R for the invoice month is not in the same month as payment is received.
Let me show you how to add a discount to an invoice, @RKN.
A credit memo is used when your customer returns items for which you have already recorded an invoice, customer payment, or sales receipt.
You can create a discount item to apply it to your invoice. It could be a percentage or a fixed amount. You can follow the steps below on how to create it.
After that, here's how to add them on an invoice:
For additional resources, check out these articles:
Please know that I'm only a post away if you have additional concerns in handling those discounts. I'm more than willing to help. Take care and have a great day!
Thanks for joining on this thread, @racengr.
I appreciate you for following the resolution provided by my peer and sharing its result.
Applying a senior discount for the entire invoice is quick and simple. Let’s create a specific item for your discount so you can easily identify it.
I've attached a screenshot on how the transaction looks like after following these steps.
Now that we’re all set, let’s go to the invoice you’re working on. This time, enter the discount item below the Subtotal line.
Let me know if you have any clarifications or questions. I’ll get back to answer them for you. Have a great rest of the day.
I don't see a subtotal line on the invoice in my version QB 2019 Desktop Pro. I entered a % for the discount below and skipped a line. It only discounts the line immediately above it (1 item) not all the lines (items). Am I missing something?
Hello there, @racengr!
You'll have to select an expense account for the discount item so it'll subtract to the total amount of your sales.
In case you need some ideas, here are articles you can read for reference: Income and Expenses for QuickBooks Desktop.
Let us know in the comments down below if you have any other questions.