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michelle161
Level 1

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

I want to notate a discounted payment to an invoice.
6 Comments 6
JenoP
Moderator

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

Jumping in to help with your question about recording customer payments in QuickBooks Online, michelle161.

 

You can edit the invoice and add a discount item to lower down the amount of the transaction. I'd be glad to share these steps with you:

 

First, turn on the discount feature.

 

  1. Go to the Gear or Settings ⚙ icon and then Account and Settings.
  2. Proceed to the Sales tab on the menu.
  3. In the Sales form content section, click the Pencil ✏ icon to edit it.
  4. Select the Discount checkbox to turn it on.
  5. Click Save and then Done.

 

This adds the discount field to your invoices and sales receipts. QuickBooks also creates a Discount given account to track everything on your chart of accounts.

 

Second, apply a discount using a percentage or specific amount. Here's how: 

 

  1. Open the invoice that you're working on.
  2. Go to the Discount section just below Subtotal.
  3. Click the drop-down list and select Discount percent.
  4. Enter the 2% discount and QBO will automatically adjust the amount of the invoice.
  5. Click Save.

 

Here's an article that talks about this feature a little more: Add a Discount to an Invoice or Sales Receipt in QuickBooks Online.

 

I'd also like to share these articles for additional guidance and reference:

 

 

Please know that you can always reply or reach out to us again if you have other questions. We'll make sure that everything is sorted out. 

JenoP
Moderator

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

Hi michelle161,

 

Hope you’re doing great. I wanted to see how everything is going about adding discount to your invoice. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

AV10
Level 1

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

A customer sent payment for 5 invoices and each invoice is recorded separately in QBO.  The total of the invoices is $33,720.

The customer deducted $10,000 in insurance fees from total of the 5 invoices and we received a payment of $23,720.

How do I record this deposit of $23,720 in QBO?

Do I need to allocate the 10K over the 5 invoices?

 

Thank you

Annet

 

AlcaeusF
Moderator

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

Hi @AV10,

 

I appreciate the detailed information you've provided about your concern. Allow me to assist you in recording the customer payment in QuickBooks Online.

 

I recommend adding the invoice payments to the Undeposited Funds account temporarily. This way, you can record the deposit of $23, 720 into the system.

 

When you enter a bank deposit, you'll get an option to add the insurance account to deduct it from the overall total. You can start by going through each recorded invoice to make a payment, then proceed with creating a deposit.

 

Here's how:

 

  1. Open the invoice.
  2. Click the Receive payment option in the upper-right corner.
  3. Below Deposit to, choose Undeposited Funds.
  4. Enter the payment amount.
  5. Hit Save and close.
  6. Repeat steps 1 - 5 for the remaining invoices.
  7. After recording the payments, click the + New option and select Bank deposit below Other.
  8. Choose the bank account and add the payments.
  9. Add the insurance account under Add funds to this deposit (you can enter a negative amount to decrease the total).
  10. Hit Save and close.

 

If you're unsure of the account type, it would be best to consult an accountant. They can provide expert advice to ensure your books are accurate.

 

Additionally, I've attached an article for your reference on how to locate payments you expect to see in the Bank Deposit window in QuickBooks: Find missing payments you want to deposit in the Bank Deposit window.

 

Drop me a comment below if you need more guidance on the process or if you need clarification. I'll be happy to help you some more. 

DispatchEra
Level 2

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

we have a customer who pays 50+ invoices at a time over 31k .  It is hard to enter these payments as receive payments screen wont let you sort by invoice number and it is tedious to find them all as there are hundreds of invoices. now that customer also gets a quickpay discount which takes a small percentage off of each invoice so $2-5 per invoice how do i do this without it taking ages. Need to be able to put in discount on each invoice easily and quickly and have it recorded as discount  and it is not a standard percentage so cant set it up for across the board on all invoices for this customer. Going into each invoice to add discount as line items takes forever and makes you lose all progress on payments screen.  How can we enter these payments without having small amounts left on each invoice that we then have to go back in and write off or alter each invoice to match it is beyond time consuming. I would like to track this discount amount and have it all be put into a discount item on the chart of accounts. 

GlinetteC
Moderator

How do you record a payment lower than invoice amount. For example, if customer pays early and received 2% discount. Do you have to go in and edit the invoice first?

Thanks for reaching out to the Community, DispatchEra.

 

I can see that you have a similar post answered by my colleague, MaryRoseNicoleN. If you haven't received any notification, you can click this link to route you to the conversation. 

 

Post again here if you have other questions about managing invoices. I'll be around to help. Keep safe always. 

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