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How do I add a subtotal and a discount to a Purchase Order?

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Content Leader

How do I add a subtotal and a discount to a Purchase Order?

Hello and welcome to the Community, @BeauJ.


I've got some insight that can help you properly discount and subtotal the expense accrued from your business's Purchase Order (PO). Since the purpose of this form is to show the acquisition of inventory through Cost of Goods Sold (COGS), it needs to retain its full value and can't be discounted directly. Instead, you'll need to discount the Bill transaction created from the PO. Here's how you can do this:


Discount a bill with a Vendor Credit

  1. From QuickBooks Online, click the  Plus (+) icon and select Bill. Enter the same vendor as your Purchase Order.
  2. An Add to Bill menu will appear on the right side of the screen. Click Add under your purchase order to convert the transaction to a Bill.
  3. Verify the information, then click Save and close.
  4. From the Plus (+) icon menu, select Vendor Credit.
  5. Select the same vendor as above and enter the discount amount as a line item (the account used here is typically the original expense account on the Purchase Order, so usually COGS).
  6. Click Save and close.
  7. Lastly, locate the Bill again by navigating to the Expenses tab > Vendors section > click vendor's name > click the Bill to open it.
  8. Select Make a payment. Verify the Credit is checked off at the bottom and only the discounted balance remains to be paid.

Doing this will reduce the expense of the items you're selling while retaining their original cost on the Purchase Order. Check out our guide on creating vendor credits and this video tutorial on Purchase Orders for more information:


With these steps, discounting and subtotaling your purchase orders has never been easier. Please keep in touch with me here should you have any additional questions or concerns. Thanks for reaching out, wishing you a very merry holiday season ahead.

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