if you offer day-to-day discounts to your customers how would you record that in
quickbooks online if you have any questions about this topic you can leave them in the
comment section below and I'll do my best to help you and of course if you feel the video
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that come out all the time there are really two kinds of discounts that you can record
in quickbooks online software first you could record what's called qualifying sales discounts
these are discounts that the customer receives at the moment the service or the merchandise is given
it's usually for a specific reason like employee discount family discount Black Friday discount
and so on and it could be a specific amount or a percent of the sale however early pay discounts
are different they're always a percent of the sale and they're only for invoices not sales receipts
the customer receives the discount if they pay the invoice within an agreed-upon number of days
and you must put these terms of the agreement on the invoice at the date of the sale now in
this video we will only discuss qualifying sales discounts you can have a separate account in the
chart of accounts to track the amount of each type of discount given for example you could have one
account for employee discounts and one account for Halloween discounts so that you can compare the
totals and know the total money that you're losing on each separate discount in quickbooks online
the account type you choose is income and the detail type is discounts or wreaths funds given
and that's because an accounting theory discounts are really a contra income account so they should
show in the income section but they should show as a negative to your profit and loss so let's go
now to QuickBooks Online and set up two kinds of discounts one will be a good customer discount $20
off any sale of service and the other one will be a Thanksgiving Day sale discount 10% off the sale
first let's set up the accounts in the chart of accounts at the bottom we click accounting chart
of accounts now we go to the top right and click new and again the account type as we mentioned was
income but the detail type should be discounts or refunds given and the name of the first one will
be good leave capital good customer and then we'll click Save and new and again it has to be the same
type income and detail type discounts refund given and this one will be Thanksgiving sale and now
after we click Save and new or we could even click Save and close you can see the chart of accounts
in the income section now includes an account to track those to separate those two separate
discounts at the moment we give them good customer and Thanksgiving now for these types of discounts
you have to do an additional setup step you must make an item in the items list for each type of
discount you have the item goes at the bottom of the invoice after all the other item the item
type for discounts in QuickBooks Online could be service or non inventory part but we will put it
as non inventory part so we will make an item for each of the two discounts that we just put we can
click the cogwheel and go to products and services now this is the items list that you're going to
add the discount items to and when you click new you could either make them a service or a non
inventory part I'm gonna make them a non inventory part the first one will be good customer discount
and the income account that it's associated with is the income account we made a moment
ago wilco scroll down a little bit here maybe up a little bit okay where is it
and think the good one is down here it is good customer discount notice you do
not put in the money amount or the percent you will have to do that at the moment of
the sale now we can click Save & new and put in Thanksgiving Day discount
and of course that item would be connected to the appropriate account in the chart of
accounts Thanksgiving Day sale save and close and now we have the two discount items ready to be
placed on invoice when we make the sale and give a discount now let's try some transactions let's
imagine on March 27th we did 11 video hours and 5 editing hours for Alan he paid directly to the
bank account and he's a good customer so he gets the discount of $20 off no problem to do this you
open the new transaction menu either click on the top left where it says new or if you don't have
that go to the top right and click the plus sign close to the cogwheel either one will open the
same choices in the new transaction menu we would make a sale receipt the same way we learned before
and we know that the date is March 27th of 2017 and in this case the good customer is Alan and I
believe we did five editing an 11 video so we'll put video first and we'll put 11 and then on the
next line we'll scroll down a bit here and then on the next line will put editing and that we
did five of okay so it's four thousand dollars before the discount but on the next line Alan
is getting the good customer discount now watch carefully because this discount should be put
in as a negative number so here we go notice the total the bottom decreases by the amount of the
good customer discount $20 now when we click Save and close we can check the reports in our trial
balance and you can see good customer discount showed up on the trial balance for the first
time as $20 now let's make a transaction with the other discount let's imagine on March 28th
we did 14 editing an 8 video for candy she gets the Thanksgiving Day sale discount of 10% paid
directly into our bank account so we would click the plus sign and again go to sale receipt of
course it could be on an invoice but it's usually on a sale receipt the customer is candy now it's
March 28th of 2017 be very careful about that and what did we get 14 editing and 8 video so
that's exactly what we'll record editing will be 14 and video will be I forgot already yeah
video will be 8 now on the next line we record the Thanksgiving Day discount so here it is and
if we scroll down now it's up to us the user that's will not make that taxable that was an
accident but it's up to us the user to calculate the discount and put it in as negative so if the
balance before the discounts is 4360 and it's a 10% discount then I believe it's 436 dollars as
a negative number 436 and again the difference with QuickBooks Online is in each case you must
calculate the discount yourself and physically put the amount of the discount on the sale receipt or
the invoice you have to put it yourself at the moment that you record the transaction now when
we click Save and close we can go back to the trial balance and see that the Thanksgiving sale
discount is here for 436 dollars let's finish with one more for good measure March 29th did 4
video hours and for editing hours for Betty she paid directly to the bank and she gets the good
customer discount so we click the plus sign we go to sales receipt and the date is March 29th let's
just double check that yes March 29th for and for the customer is Betty and it's video a f4 and it's
editing for and the bottom line or at least the last line is the good customer discount remember
if it's accidently taxable you have to remove that checkmark you have to be careful when you set that
up however you have to put it in as a negative $20 and when you push tab you can scroll down
to the bottom of the invoice and see the invoice was 1760 but you lowered it see look without the
discount here if I take this out it's 1760 but if I put in minus 20 remember you have to put it in
as a negative number for it to show up as a contra income on the debit side so she only has to pay us
1740 save and close and just click yes don't worry about that and when we come back here you can see
that good customer discount has increased to $40 and we can double click the account and we can
see every eat that we ever put the good customer discount on and see the total and if we're not
sure of any particular receipt we can double click and go back and see exactly what we did