We have a vendor that gives us a 2% discount if we pay the invoice within tens days. How do we apply the discount when we make payments?

We can create a vendor credit to apply the discounts when paying your vendor, Katelm. I'll be glad to guide you through completing this process.

To apply the 2% discount, you can consider creating a vendor credit specifically for that supplier. This discount amount will be reflected and applied to your payment, reducing the total due. Here's how to do it:

1. Log in to your QuickBooks Online account.
2. Go to the + New section, then select Vendor credit.
3. Select the vendor that offers the 2% discount.
4. Add the necessary details.
5. To apply the discount, manually calculate the 2% and enter it into the Amount column. Be sure to accurately match the Category or Item details from the vendor's bill to ensure consistency and correctness in our records.
6. Once done, please click Save and close.

For reference, please check out this screenshot below:

Afterward, proceed to the Pay Bills page to complete the payment with the discounted amount. Follow these steps to accomplish this:

1. On your QuickBooks account, go to the + New button.
2. Under Vendors, select Pay bills.
3. Once on the Pay Bills page, locate the vendor you want to pay and tick its radio button.
4. After that, the vendor credit will appear in the CREDIT APPLIED column and will be automatically deducted from the payment amount.
5. Once done, click Save and close,

You can check this screenshot for reference:

Additionally, you can generate the Transaction List by Date to view all payments made to a vendor. For guidance in viewing this report, please refer to this helpful article: Run a report with vendor totals in QuickBooks Online.

The steps outlined above will assist you in effortlessly entering your vendor discounts into the software, Katelm. Should you have any further questions, please feel free to comment on this post. We will respond as soon as possible.