I do not currently separate tax on vendor bills.
This creates an issue with my largest vendor (hundreds of invoices each month) who offers me an early pay discount, before tax.
I cannot set up the Quickbooks terms using the automatic discount because QB will take the discount off the total bill which includes tax. I am left to either add the discount on a separate line at the time I enter the bill or enter the discount at the time I pay the bill.
Both of these are time consuming and prone to data entry errors. When I pay a statement there are HUNDREDS of invoices on the statement which I would have to apply the discount to each one at the time of pay. Putting the discount on at the time of entering the bill means I change the actual bill amount which could make finding that bill more difficult if a question arises or a credit is needed, etc.
Can someone help me with a better process on how to handle this issue? If I do start separating the tax as an item on the vendor bills, will I be able to set up the automatic discount to only calculate the expense and not the total bill?
