I have a vendor that has payment terms that is 12% 30; 10% 60; NET 61. So this means if we pay within 30 days of the invoice date we get a 12% discount, if we pay within 60 days of the invoice date we will get a 10% discount and then if we do not pay early all is due 61 days of the invoice date. The way I have it set up in QuickBooks, it does not calculate correctly. Please advise how to set this term up correctly to calculate correctly.
I can get this taken care of and fix your concern. I'll be glad to guide you on how to set up net terms for your vendor payments in QuickBooks Desktop. Here's how:
Go to the Lists menu then choose Customer and Vendor Profile Lists.
Select Terms List then click New from the Terms drop-down ▼.
Enter the desired name for the payment term then choose Standard if you want to have a payment due within a specific number of days from the bill date. Say your bill is due within 61 days, and you're given a 12% discount if you pay within 30 days. Create another term using the same process above.
Select Date Driven if you want to enter the day of the month that a payment is required within the due date. Say, your bills are due on the 30th day of the month and you're given a 12% discount if they pay before the 20th of the month. This way, QuickBooks will know that "30" means the "30th day of the month" and not "30 days after the bill date", enter 12% 20 Net 30. Create another term using the same process above.
Hit OK once done.
Also, please take note that the terms you've set up is a single condition hence can only be used once.
Furthermore, you'll also want to customize your vendor reports in QuickBooks Desktop. This way, you'll be able to see where you're company stands in terms of expenses and payables.
Don't hesitate to read this awesome help article if you've got more QuickBooks concerns, such as importing and exporting data, managing inventory, and projects, track income and expenses, setting up payments and connecting to third-party apps, online banking and many more to keep your business up and running smoothly.
Please know that I'll just be around here in the Community if you needed any help. Have a good one and take care always!