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Level 1

Discounts on Payments received

Our customer set up a 3rd party payment method where we take a discount so we can receive our payments for jobs complete in 48 hours instead of 60 days. Where should I set up the discount account in the chart of accounts?

2 Comments
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Anonymous
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Re: Discounts on Payments received

I would put that somewhere in the 'Cost of Sales' group - create a category (gl account) if you want them to be fully separated.
Anonymous
Not applicable

Re: Discounts on Payments received

Hi there, @jrockin2015,

 

In addition to MikeinBC's answer, you can set up a discount item in the Item List window then add it on the transaction to account for the reduction. Follow the steps below:

 

  1. Go to List.
  2. Choose Item List.
  3. Click the Item drop-down arrow at the bottom of the Item List window.
  4. Select New.
  5. Click the Type drop-down, choose Discount.   
  6. Enter the Description and the Amount or % of the discount.
  7. Choose a COGS account on the Account field where the discount be mapped. Please note that Sales Discounts are contra-income accounts.
  8. Click OK.

Now you can assign the item on the invoice so it reduce the amount they need to pay.

 

I'm always here to help you with any of your QuickBooks concern. I'll be more than happy to help you anytime. Have a nice day!

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