Series
We have several posts here at Begin Coding Now that are on QuickBooks Online that are grouped into Series. Click the previous link to see the list.
How you you grant a customer a “normal”, “day-to-day” discount in QuickBooks Online? There are two types of discounts. The first one mentioned here is the one you were probably thinking of. It’s a “sale” discount, or a “special event” discount or ‘family & friends” discount. The second type of discount is only for invoices, not sales receipts. We give this discount when a customer pays their invoice early. It’s always a percent of whatever the balance of the invoice is.
- Qualifying sales discounts
- Early pay discounts
You can have a separate account in the chart of accounts to track the amount of each type of discount that you give. For example, you could have one account for employee discounts, one for Back-to-school discounts, one for end-of the -season discounts and so on. the account type you choose to track these discounts is called an income type of account, and the detail type is specifically discounts and refunds given.
Discounts are what they consider to be contra income accounts, and they should show up on the income section of the profit and loss. They help you derive the net amount of your income. Discounts show up in the financial statements not as expenses, but as contra-income accounts, which means they are part of the revenue section of the Income Statement (Profit & Loss Statement). Revenue recognition principle states that revenue is recognized when it’s earned, and the revenue-generating activity is substantially complete.. In Accrual accounting, revenues and expenses are recorded when they’re earned or incurred, regardless of when they’re paid.
Good Customer Discount
Let’s first look at this one. This could also be called the family and Friends discount. We need to modify the chart of accounts. Click the Cog Wheel, Chart of accounts. 