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Pikk292
December 30, 2021
Question

Applying a Payment with a deduction for material cost

  • December 30, 2021
  • 1 reply
  • 0 views

One of our vendors subtracts the cost of material for each payment they make to us. In QB Desktop, I found it very simple to apply this deduction to the payment so that it reflected correctly. However, I find QBO a bit confusing in this regard. Can someone explain the process in QBO? I'm sure it's not complicated but like many other things in QBO, it's a bit counterintuitive. 

 

Thank you in advance!

1 reply

T
Trish_T
December 30, 2021

Hi Pikk292.

Thanks for reaching out here. It's good to see you back! QuickBooks Online is a powerful program that helps you get ahead with your work. I'll be happy to share more information so you're on track with your QuickBooks goal!

With the information you've provided, there are two ways to record the deduction for materials. The first would be to add the item to your products and services and add it as a line item on the transaction as a negative figure. 

Here's how to add the product/service:

1. From the Gear icon in the top right
2. Select Products and Services and then New
3. In the Product/Service information panel, choose Non-inventory
4. Give the item a Name 
5. Complete the remaining fields
6. Hit Save and close when done

The second option would be to create and apply a credit memo . You can decide which option is the best fit for you.

If you have any other questions, please don't hesitate to reach back out. We'd be glad to assist!

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