Create an Invoice with Discount Example for Technical Support Effortlessly

Invoice with discount example for Technical Support

welcome to this QuickBooks Online tutorial for beginners 2019 my name is Matt Holmquist with the QuickBooks University and in this video I want to go through how to add subtotals to invoices and also how to show and enter customer discounts on that invoice okay and and the reason I'm doing both of these together is because I want to show you okay first how do you show a discount on a certain subtitle of services and then if you have additional things on top of that products or services you sell and you don't want to do a discount on those I want to show you how to show that on an invoice alright so first things first we've got to setup the discounts alright so the first thing you want to do you want to go to your chart of accounts alright so go to the gear icon I go over to my chart of accounts and I want to make sure that there is a revenue account that is called discounts or courtesy discounts or whatever you want to call it okay so in this QuickBooks sample file we've got discounts given this is an account you may not have one of these and if you don't you're gonna go in and you're just gonna basically set up the account okay it's an income account the detailed type discounts refunds given and then you can call it whatever you want you want to call it you know courtesy discount or you know friends and family discount whatever you want to call it okay now the reason we're setting up an account for this is because we want to be able to track this separately so that we know how much in discounts were giving alright so very very important you set it up it's a revenue account an income account and you can call it discounts given the courtesy discounts whatever you want to call it alright so first set that up all right now second what we're gonna do we have to go to our items lists ok the products and services if we go over here we're gonna see that you've got to set up an item that is a discount ok so in this sample file there's already this courtesy discount items set up ok so let me show you how this is set up alright so it is a service alright so when you set it up you've got the options of inventory non inventory service and then there's a bundle option you're gonna choose service all right so it's a service item and let me go back over here again okay and you're gonna call it whatever you want to call it name courtesy discount friends and family whatever you call it you don't need there's no SKU there's no category it you do want to you don't have to but to put in a description down here that will show up on the invoices automatically okay so this one we're saying this is a courtesy discount we're saying the sales price is zero and then the income account is going to go to that discounts one that we just set up all right so discounts given okay this is not taxable and then we're gonna hit save and close okay so when we go to do an invoice alright so let's go and go ahead and do this we'll go to invoices and we're gonna go to new invoice alright so we're gonna fill in the information here let's say that this is Dylan Seoul Frank okay and there's you know certain things that we build this customer for let's say there's certain things that we did we're gonna add you know let's say that there was okay let's say we had some concrete work and it was three thousand dollars and then let's say that we had some installation work and let's say that you know there was five hours of that okay and then let's say that let's say there was some pest control okay and it was thirty five dollars okay so when they get their invoice they're just gonna see these line items three thousand to fifty thirty five dollars so if you want to subtotal these amounts okay to show on an invoice you simply click Add subtotal okay so it's gonna say subtotal 3285 all right so if you want to give a discount on these services for whatever reason okay you want to do the subtotal first and then what you can do is you go here to the item you say courtesy discount all right and it's going to show up the courtesy discount you can change this description and let's say that this is negative 250 all right so you'll see here it subtotals the amount 30 35 all right now if there's an additional item that you want to build for you don't want to give a discount for okay you can say gardening or whatever the item is and let's say that there were you know five weeks worth at $25 each week okay so now it's gonna add this item in and not give a discount to all these items all right so it'll subtotal the invoice down here okay and show the total amount due all right so at this point then you know you send the invoice to the customer and get paid for it okay so what we accomplished here is the first thing is you want to set up an account and I want to save and close this so I can show you okay if I go to my profit and loss so we first set up a an account in our chart of accounts that shows the discounts all right so you'll see here a line item discounts given it's going to show up as a negative so it was important back on that invoice to enter that discount as a negative amount so it reduces the invoice all right so on the profit and loss we're showing 559 and you'll see here Dukes basser I'm sorry Dylan soul Frank to 8 invoice $250 discount all right so we're able to now track the discounts directly in our financial statements so we can see how much in discounts we're giving okay you know a lot of people will just directly offset it against a income item like design income but it doesn't give you a true picture of okay here's what I built and here's the discounts I gave because if those discounts get out of control you'll kind of you know it's very hard to know just by looking at your financial statements all right so that's it on adding subtotals and giving customer discounts if you have any questions your comments leave them below also would love to have you join me at the QuickBooks University where you know you can ask all your personal questions when you purchase the tutorials and become a member of the QuickBooks University that website is cubie University orj and I look forward to seeing you there