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SIreland1
February 4, 2022
Question

How would I process a customer payment but also apply a credit and discount to it? For example, the customer owed $2,300 and the credit was for $1,000 and the discount was 1%.

  • February 4, 2022
  • 2 replies
  • 0 views

I will give an example, say the customer owes $2,300.00 and there is a credit that can be applied in the amount of $1,000.00 and a discount is to be applied at a rate of 1%. First of all, does the credit have to be applied or can it be saved for another time? This is how I think it would work, if the credit was applied, it would bring the new balance down to $1,300 and the discount would apply to this amount. The discount would therefore be $13.00 and bring the remaining balance down to $1,277.00. I would like input on how to do this in QuickBooks. Thank you.

2 replies

T
Trish_T
February 4, 2022

Hi SIreland1,

 

Welcome to Community!  It's always a pleasure to hear when customer's receive a credit.  QuickBooks Online is a dynamic program with everything you need to record your transactions accurately.  I'll be happy to provide more information so you're on the right track with your work!

 

There are two ways you can record customer credits.  You can decide if you'd like to immediately reduce the balance for your customer, or enter a delayed credit to be used on future transactions.  If you've turned on the automatic feature, QuickBooks will apply credit memos to your customer's balance or open invoices, or you can turn the feature off, so you can decide when they're applied.  Here's how to create and apply credit memos in QuickBooks Online.  If you need additional assistance, I recommend reaching out to your accountant for their expertise and the best course of action.  If you don't currently have one, we can assist you with locating a ProAdvisor in your area.

 

Feel free to reach back out with any other questions you may have.  We'd be glad to help!

 

    S
    SIreland1Author
    February 4, 2022

    Thanks so much for your explanation Trish! A follow-up question is how do I proceed if once I click on the Discounts and Credits button and it is showing as:

                                                                                    Original Amount: $2,300.00

                                                                                    Amount Due: $1,300

                                                                                    Discounts Used: $23.00 (also I think this should be                                                                                            $13.00 since if there was a credit of $1,000, shouldn't the                                                                                    discount be based on the remaining amount of $1,300?)

                                                                                    Credits Used: $0.00 (This originally had $1,000 but now                                                                                      has $0, so I think I did something incorrectly.)

                                                                                    Balance Due: $1,277.00

     

    Thank you,

    Sue 

    T
    Trish_T
    February 4, 2022

    Hi SIreland1,

     

    Welcome back!  Ensuring the discount is being recorded accurately is a time saver.  I'll be glad to help!

     

    Based on the additional information you've shared, I recommend taking a look at how the discount is set up.  You can add a discount as a percentage or value to the subtotal, or as a line item.  Here's a helpful article for your reference to assist with adding a discount to invoices or sales receipts.

     

    Let me know if this solves your concern.  I'll be near by!

     

     

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