What's the best way to adjust books to account for the 50% deduction for meals and entertainment expenses?

Hello there, ldruesch.

You can create a discount item affecting the expense account or just create an expense account to keep track of your discounts. Then create an Expense or Check affecting the item or account.

Here's how to create a discount item:

1. Go to the Sales menu and select Product and Services.
2. Click the New button.
3. Select either Non-inventory or Service.
4. Name the item something like Discount. 
5. Select the correct income and expense account.
6. Click Save and close.

You can follow these steps in creating an expense account. 

1. Click Accounting and select Chart of Accounts.
2. At the upper-right, click New.
3. Select Expenses or Other Expenses as the Account Type.
4. Choose and click the Detail Type.
5. Enter a unique name for the account.
6. Click Save and Close.

When choosing the account to be affected, I'd also suggest reaching out to an accountant. They can also advise other options on how to enter discounts depending on your business preference. 

Feel free to use these references in handling expenses: 

• Common custom reports in QuickBooks Online
• Learn about the chart of accounts in QuickBooks

Let me know if you have other questions. Take care!