How do I setup purchase discounts to calculate automatically?

I'm here to help set up purchase discounts in QuickBooks Online (QBO), janet37.

Setting up discounts for your purchases will depend if it's a sales or early payment. For sales discount, you enter the actual amount paid to your vendor.

While early payments is income to your business. You'll need to create an income account for the early payment discount. Then, create a service item to track it. Here's how:

1. From the Sales menu, select Product and Services. 
2. Click New at the upper-right. 
3. Select Non-inventory or Service as the item type.
4. Enter a distinguishable name for the item.
5. Select an Income account or the discount account you'll want to use.
6. Click Save and close. 

Once done, open the bill, add a line item for the discount, then enter a negative amount. Select the income account if you're using the Category details. And, enter the service item if you're using the Item details, then click Save.

Once done, you can then pay the bill with the discounted amount.

Stay in touch if there's anything else you need. I'm always right here to help.