Create and Manage Your Invoice with Discount for Management Effortlessly

Invoice with discount for Management

foreign with another tutorial whether how we can apply customer discount to invoices in QuickBooks desktop well applying discounts to invoices is a common practice as it can be a powerful way to encourage customers to make brown payments anyhow in this tutorial I will apply discounts to invoices keeping three scenarios in mind like applying discounts within the invoice then giving discount while using terms and then put the combination of both so before reply this comes to invoices we need to set up few things like discount account terms and subtotal so that we can apply it correctly so go to items and services list to see whether we already have a discount account or not and search discount here in this field and here you can see that after searching nothing showed up it means that no discount account has been set up so far so to set up one click on new Under item here under the type field select to discount you can name it whatever you want and write the description if there is a need and also you can make it a sub account too and here in this field you have both the options either you can add your discount in terms of dollar amount or in terms of percentage remember if you put it as a percentage you have to add the percentage sign to them anyhow here you need to assign an account to it so that QuickBooks can track it properly if you already have one just select it and if you don't click on add new and create one well you can create and assign either an income or expense account to it if you create an income account it will track it as a negative value and will show its impact under gross profit and if you create an expense account it will track it as a positive value and will show its impact in Internet profit so it's really matter of choice how you want to strike it and in this tutorial I'm creating it as an income account to assign and track it and here you can see that the discount account has been created and assigned and then click on OK now let's set up turns and to set up turns go to list and select terms list under customer and vendor profile list and by default QuickBooks has already set up some terms for us but to make it clear I'm creating new one so click on terms and select new here at netdays and then at the number of days you are offering a discount for and if the customer pays Within These certain days you will give him a certain percentage as discount and then give it a name and click on OK and here you can see that a new term has been set up now let's set up subtotal so go to items and services list and search subtotal and here you can see that it showed up which means we already have created it in our previous tutorial and I will give its Link in the description where you will be able to see how it's set up and applied well we have just set up discount account terms and subtotals now let's apply discount while creating invoices and while creating invoices I will apply discount with and without using turns him so go to create invoices and select your customer well to keep it simple I have selected Services invoice template but you sure can select the one of your choice which may or may not give you more options now add some items to your invoice and when you will add discount to your invoice it will apply to the immediate line above it ignoring the other items added to the invoice which is not what we wanted and what we wanted to apply to all the items added above it so instead of applying discount like this first we need to add subtotals so right click on it and delete the line and then add the subtotal first which will give us the total amount of all the items we have added above the subtotal and when we apply the discount now it will calculate the discount amount accurately well on the other hand you sure can overwrite it like if you don't want to give your discount in terms of percentage you sure can overwrite it I can add a fixed dollar amount well for the time being I'm keeping it as a percentage and you may have observed that I didn't add any terms to this invoice which I will when I will create a new invoice so just click on Save and close to decode your invoice and when you go to receive payment and select your customer you will see no discount information here because the discount has already been applied to the invoice so just select the invoice and make changes ing to your need and then click on Save and close to get paid now let's create another invoice and add some items and instead of applying discount to the invoice let's add some turns this time which means that if this customer makes payments within 12 days he will get four percent discount on this invoice less the invoice date is second margin which means that if this customer pays till 14th March he will be entitled to receive four percent discount we offer to get payment as early as possible and then click on Save and close after making changes if needed and as soon as you will click on Save and close QuickBooks will give you a prompt mentioning that you have changed the terms just click on yes to record the invoice and when you will select your customer under receive payments QuickBooks will inform you that this customer has a discount against this invoice on the basis of the terms we have applied and when you click on discount and credit it will not only give you the full information of the invoice but also calculate the amount of the discount for you and when I change the date exceedingly suggested discount limit which is 14th March and reselect the invoice the discount formed against this invoice disappears and when I go to Discount in credit it does give me the terms information but it does not calculate the discount amount anymore because the suggested discount amount limit has gone so to apply the discount I'm changing the date back within the suggested discount amount limit and then go to Discount and credit well you still have the option to overwrite it and then select the discount account but to keep it simple I'm going with the suggested discount then click on Save and close and record the payment now let's create another invoice which includes both the discount and terms and here you can see that the total amount of the invoice was 950. out of which we already have applied some discount which decrease the invoice amount to 902.5 and above it we offer more discount in terms of applying terms to this invoice to get the payment as early as possible so record this invoice by clicking on Save and close and then go to receive payment and select the customer and as soon as you will select the customer it will give you a prompt as it did before so just go to Discount and credit and apply the discount and click on Save and close to record the payment and this is how you can apply customer discount to invoices in QuickBooks next row and if you have state this far please consider supporting by liking subscribing and sharing your thoughts in the comment section and I hope this will be helpful for someone out there and thanks for watching