Can Quick Books Online automatically calculate early payment discounts when I pay vendor bills? orDo I have to modify the invoice to add the discount line before paying.

Hello @tallenDPI,

You can create a vendor credit as a discount for your bills and it'll be used automatically  use it when paying them.

1. Go to the Plus icon.
2. Under Vendor, select Vendor Credit.
3. Select a vendor.
4. Choose an item or account.
5. Enter the amount of discount.
6. Click Save and close.

Once done, here's how you can use the vendor credit as a discount when paying your bills:

1. Go to the Plus icon.
2. Under Vendors, select Pay bills.
3. Select a bill transaction.
4. Vendor credits will be used under the CREDIT APPLIED column.
5. Enter the remaining amount to pay on the PAYMENT field.
6. Click Save and close.

Here's an article you can read to learn more about how to use a vendor credit: Enter a credit from a vendor.

I've got you this helpful article in case you need some ideas especially in managing your vendor's transactions: Income and Expenses.

You can always get back into this post if you have more questions.

When entering the vendor credit it says choose "item/account" that's where I get lost.  What specific account do I choose? Is it a specific early pay discount account and how do I set that up? Or is do I choose the items that received the early pay discount which would be a total pain in the rear-end. Plus then I'm concerned it would take the items out of inventory.

What account do I choose when entering a vendor credit for early pay discount? and how do I set it up?

Thank You

My company found a work around although you still need to calculate the discount on your own:

We created a GL#, 85115 A/P Discounts Earned, that I enter on the second line of the category details section and when you put the discount amount in the amount box you make that number a negative. Of course you still need to enter the regular payment info and GL# on line 1 of the category section

It saves from at least having to create a separate credit voucher to take a discount.

I will do my best to a bit more gracious and cordial than some of the other comments in this thread, however, I must say I agree that this should absolutely be a 100% priority on QB's upgrade list. Seeing as it was a common and helpful feature in Desktop, I'm not sure what could possibly be so hard about implementing this simple, yet hugely useful tool. Please, please, please put this feature at the top of the list. Three years of begging from your clients speaks pretty loudly. Thank you!

Absolutely appalling that this issue is not solved. I called the help desk and they tell me to leave a comment under feedback. That is obviously useless as this has been done for 3 years and nothing has changed.