How do we capture account settlement discounts ?

Hi there, warren-alvern.

Welcome to the Online Community. Let’s use the Discount feature to capture the settlement transaction and then add it on the invoice. 

The first thing to do is to turn on the option in your account. Here’s how:

1. Go to the Gear icon at the top and select Account and Settings to access the Sales menu.
   
2. From there, tap the Pencil icon for Sales form content and then mark the box for Discount.
   
3. Click Save and Done.

This will add the discount field to the sales transactions. To apply for the settlement, choose which type to use (Discount percentage or Discount value).  

1. Tap the Plus icon at the top and choose Invoice under the Customers section.
2. This will lead you to the Invoice page.
3. From there, pick the appropriate client by clicking the Customer drop-down.
4. Add the item in the Products and Service column and then fill in the remaining field boxes.
5. Under Subtotal, click the drop-down and choose a Discount percentage or Discount value.
6. Enter the amount you want to discount.
7. Once done, hit the Save button.
   

For an overview of the feature and detailed instructions to set it in QBO, check out this article: Add a discount to an invoice or sales receipt.

Reach out to me whenever you have additional questions or concerns. I’ll be right here to assist further. Have a great rest of the day.

THIS IS GREAT IF I WAS WANTING TO APPLY A DISCOUNT TO A CUSTOMER.

HOWEVER I AM ASKING HOW TO APPLY AN EARLY SETTLEMENT DISCOUNT TO A SUPPLIER.

Let me help you apply an early settlement discount to a supplier, @CJ GOOCH.

We have different ways how you can apply an early settlement discount to a supplier in QuickBooks Online (QBO). We can either create an income account for the discount and add it to your bill or record a supplier credit. Here's how: 

1. Go to Accounting.
2. Choose Chart of accounts.
3. Click New.
4. Tap Income from the Account Type drop-down.
5. Select Discounts/Refunds Given from the Detail Type drop-down menu.
6. Add a discount name and hit Save and Close.

Once done, add the discount as a negative amount on the bill. You'll see an amount owing is reduced by the amount of the line entered. For creating a supplier credit, refer to this article: Enter a credit from a supplier. I've also added this article for your future task about tracking the specific aspects of your business: Run reports in QuickBooks Online.

Please don't hesitate to let me know if you need further assistance with running supplier reports or any QuickBooks-related. Just click the Reply button below. Take care and have a wonderful day ahead.