Entering discounts and credits in QuickBooks is part of maintaining accurate financial records and managing customer transactions effectively. Discounts encourage sales or reward loyal customers while credits are more commonly issued for refunds. So, knowing how to accurately record them will help companies keep track of their accounts receivable and promote goodwill with their customers. QuickBooks may help you to enter a discount and credits in a few simple steps so that your records will be accurate and clients happy.
In this blog, we will discuss ways to enter your discounts and credits in QuickBooks, different situations, and best practices. However, getting these processes under control will help you maintain your business accounts and enhance your bookkeeping.
Read Also: How to Transfer Money in QuickBooks Desktop?
The Need to Enter Discounts and Credits in QuickBooks
It is really important to keep good records of all the money that comes in and goes out of your business. If you are an owner of a business, you must enter the discounts and credits in QuickBooks, which enables you to:
- Keep track of correct customer records
- Thus, keeping your income records in check
- Properly manage customer accounts
- Moreover, prepares you for the tax time
The process is the same and easy, whether you are using QuickBooks Online or QuickBooks Desktop.
How to Record a Discount in QuickBooks?
Step 1: Generate an invoice or sales receipt
Create an invoice (for customers paying later) or sales receipt (for on-the-spot-paying customers).
- For QuickBooks Online, Select + New > Invoice or + New > Sales Receipt.
- In QuickBooks Desktop, select Customers > Create Invoices or Customers > Enter Sales Receipts.
Step 2: Add Items or Services
Complete the form by listing the merchandise or services the client is purchasing. Fill out the price and quantity for each.
Step 3: Add the Discount
There are two ways to add a discount.
Option 1: Discount Line Item
- Create a new line and select Discount in your list of products.
- If you want to apply a discount, you can enter either the amount or percentage.
- And then, the discount will be deducted from the total amount
Option 2: Use the Discount Field (QuickBooks Online)
- QuickBooks Online provides a discount field at the bottom of the form.
- You can enter the discount amount or percentage here.
Step 4: Make sure to save the Invoice or Sales Receipt
Follow these steps after filling in all the details and entering credits & discounts:
- Click Save and send or Save and Close.
- Finally, your discount is now registered correctly.
How Do You Enter a Credit in QuickBooks?
A credit is when you return money to a customer, or allow them to apply the amount to future purchases. Here’s how to enter it.
1. Create a Credit Memo
- Click + New → Credit Memo in QuickBooks Online.
- In QuickBooks Desktop, navigate to Customers > Create Credit Memos/Refunds.
2. Complete the Credit Memo
- Choose the customer’s name.
- Then, add the items (or services) provided for the credit.
- Lastly, enter the amount.
3. Saving and Applying the Credit
After you have saved the credit memo, you can apply it to a future invoice:
In in QuickBooks Online, select + New > Receive Payment, select the customer, and apply the credit.
- In QuickBooks Desktop, select an option to refund in the form of applying to an invoice or issuing a refund.
Tips for Using Discount and Credits
- Create a Discount Item- If you issue discounts frequently, add a discount item to your product list for quick access.
- Keep Notes- Always document the reason you provided a discount or credit. This helps if you have to explain it later.
- Review Customer Balances- If you applied either a discount or credit, confirm on the customer’s account that all appears correct.
To Wrap Up
Entering invoices discounts and credits in QuickBooks lets you maintain accurate records and ensures that customers have a great experience. Whether you’re providing a small discount or credit toward future purchases, these steps will make the process easy. For a smoother experience, remember to save all the changes and cross confirm everything.
Get in Touch with Us
If you need further help in entering discounts and credits in QuickBooks for a better customer experience in your business, we are here to help you through our dedicated customer service team. Fill out the customer response form or feel free to reach to us at support@qbhelphub.com . Our highly competent team is here to solve all your queries regarding QuickBooks.
