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Luis Dominguez
May 13, 2022
Question

Early payment discount - Auto entry

  • May 13, 2022
  • 1 reply
  • 0 views

Hello,

 

There any way that when I am entering a payment before customer invoice due date the discount automatically is creating and applying?

 

I have only see two ways:

 

- Apply manually the discount in the invoice when you receive the payment. Which is a problem if you receive the payment in the next month and the previous month when the invoice was issued is already closed. So, if you edit the invoice you are editing your sales in PL statement.

 

- Or creating a journal entry or credit note for the discount.

 

Thanks,

1 reply

LeithG
LeithG
May 13, 2022

Hi Luis

 

In QBO there is no method to automatically process the discount; however, it is pretty straight forward.

1. When receiving the payment on the invoices, receive it into 'undeposited funds'; in this way when you go to create your bank deposit later, it will give you some options.

2. Go to New-> Deposit, and select the amount from the supplier as above for the received invoice; then below you can add the discount amount as a separate line; this leaves the payment and original invoice in tact, and allows you to see the discount separately.

 

Hope this helps!

Leith

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    Trish_T
    May 13, 2022

    Hi Luis Dominguez,

     

    I see LeithG has provide some valuable information for you.  In addition to that, in QuickBooks Online you can add  a discount to the subtotal as a percentage or value.  You can also add it as a line item.  Once you create a Discount item, it can be applied to invoices, estimates or sales receipts.  Here's a helpful guide for your reference.

     

    Feel free to reach out anytime you have questions.  We're happy to help!

     

     

    L
    Luis DominguezAuthor
    May 16, 2022

    As an early payment discount you can not send the invoice with the discount already applied. Since this would be required just if the customer pays the invoice before certain date.

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