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.

When you send your customers an invoice for products or services rendered, do you give them a discount off the price for paying early? This may be referred to as setting up the customer terms.

The last day that the customer can receive the discount when paying is called the discount date. Of course the customer may choose not to take the discount and pay after the discount date. That’s fine and that normal. They still must pay the invoice before the final due date.

How do you set this up in QuickBooks Online? The first thing you have to do is activate the early pay discount in the Company settings window. This activation will put the discount account in the Chart of accounts to track the total of the early pay discounts that you’re going to give. And secondly, it will also add the discount field at the bottom of the invoice window.

Click the Cog Wheel and we go across to company settings or account settings and we click the sales category of settings, we see the main section here sales form content, and you can see right now discount is off. Click it. Click Save. Click Done. Now if you create a new invoice by clicking + New, Invoice, you will see in the bottom right the Discount percent (discount value) empty box.

Also notice that QuickBooks added an account called Discounts given to the chart of accounts. It is an Income type of account. The detail type is Discounts/Refunds Given.

And the second thing you have to do to set up your QuickBooks online to be able to give your customers this special early pay discount is put the discount terms that the customer agrees to on the terms list.

How are terms written and expressed. 2/10 ➔ n/30, is “two ten net 30”. That means that the customer can take 2 percent off of the total if they pay withing ten days and the total is due in 30 days.

3/10 n/45 Example in QuickBooks Online

Click the Cog Wheel, Lists, and if the Terms list is not visible, click All Lists. You probably don’t see the terms we want, so we’ll have to create our own by first clicking New. In the popup we first only type text like this: 2% 10 Net 45. If that doesn’t work you can create the terms right when you create a new invoice by clicking the terms down arrow + Add new.