Applying a discount for early payment

When you enter a customer payment for an invoice, the Receive Payments window has a “Discount Info” button. You can use this button to give the customer a discount if your payment terms include a discount for payment before the due date. Even if the customer has sent you a payment for the full amount of the invoice, you can apply a discount.

Note: To apply discounts to statement charges, go to the Accounts Receivable register for the customer and use a Discount item.

To apply a discount for early payment:

  1. Enter the customer's payment in the Receive Payments window.
  2. Click the line of the invoice to which you want to apply the discount.
  3. Click Discount Info.
  4. (Optional) Change the amount of the discount.

    QuickBooks calculates a suggested discount amount based on your payment terms with the customer and the payment date.

  5. Enter the name of the account you use to track the discounts you give to customers.