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JulesFontaine
Level 1

Cash Receipts Journal Entry

I'm using Quickbooks 2019 Desktop for Mac. Quickbooks is creating the wrong journal entry when I apply cash receipt to open invoice and include a payment discount.  It correctly debits 'Cash' and credits 'AR' for the open invoice amount.  But it also credits 'AR' instead of 'Cash' for the discount portion.  I tried searching my setup to see if it would let me change it, but couldn't find it.  I also tried online support, but that was sadly a waste of time.  Can someone help me with the fix?

1 Comment 1
Rose-A
Moderator

Cash Receipts Journal Entry

Hello, JulesFontaine.

 

I'm here to ensure your cash receipts journal entries are correct. How did you set up your discount on QuickBooks? You should set up a discount to your inventory items and choose if it's a percentage or a fixed amount.  Let me show you how.

 

  1. Go to the Lists tab and select Item List.
  2. Click the Item button in the lower-left corner of the window.
  3. Choose New.
  4. Under the Type field, select Discount.
  5. On the Item Name/Number box, enter the name of the discount.
  6. Enter the Description and the Amount or %.
  7. Select which account will the discount be mapped.
  8. Choose the Tax Code of the discount.
  9. Click OK.

Once done, you can use the discount item when you create an invoice. I'll attach some article to help guide you in adding items as well as using it when creating an invoice:

 

Also, I'd recommend consulting an accountant. Your accountant can provide more expert ways of dealing with this situation.

 

If I can be of help while working in QuickBooks, feel free to let me know by adding a comment below. I'll be more than happy to assist you.

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