How to enter itemized discount in purchase entry

Hi there, mehul3.

Currently, there's no option to directly enter itemized discount in purchase entry. Since the purpose of this transaction is to show the acquisition of inventory through the Cost of Goods Sold (COGS), it needs to retain its full value and can't be discounted immediately.

However, you can discount a Bill transaction created from the PO. Please follow the step by step process below.

1. From QuickBooks Online, click the  Plus (+) icon and select Purchase Bill. Then, 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.

Once done, you'll need to create a Debit Note to apply it when paying bills. This way, you can record the discount provided by the vendor.

Here's how:

1. From the Plus (+) icon menu, choose Debit Note.
2. 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).
3. Click Save and close.

After that, you'll need to locate the bill again to make a payment. Follow the steps below.

1. Click the Expenses tab > Vendors section > click vendor's name > click the Bill to open it.
2. Select Make a payment. Verify the Credit is checked off at the bottom and only the discounted balance remains to be paid.

Doing the provided above will reduce the expense of the items you're selling while retaining their original cost on the Purchase Order.

Please refer to this article on how you can record a supplier's credit depends on how you enter your purchases in QuickBooks: Enter a credit from a supplier.

Please know that you're always welcome to post again if you have any other concerns. I'm always here to help you out. Have a good one.