If you provide a discount offer to customers to attract them or boost sales, you can make it easy through QuickBooks Online to apply it to your invoices and sales receipts. In this blog, we’ll guide you through a simple step-by-step method for applying discounts. Stay connected to learn the process of how to discount invoices and sales receipts in QuickBooks Online with a quick solution while managing the discounts to save time smoothly in QuickBooks Online. Let’s start the blog with easy steps below.
What do you mean by Invoices?
An invoice is one type of bill in which all the calculations of details are kept by the buyer. It also makes a list of all products and services that are provided with their prices, and the total amount to be paid, including details such as date, invoice number and payment terms. You can track and keep a record of your payments in business transactions by taking the help of invoices.
What do you mean by Sales Receipts?
A sales receipt is one type of proof that is kept by the customer for goods or services as a record of all payments made. With this, you can also see what was sold, the prices, dates and payment methods. A sales receipt confirms that payment has been made, completely unlike an invoice, which needs to make a payment request. keeping the records of transactions accurate helps both the buyer and seller.
Understanding Discounts in QuickBooks Online
You can reduce the total amount a customer pays by using the discounts in QuickBooks Online. When you apply any discounts, QuickBooks adjusts the total amount automatically and displays the reduced amount or balance. Through which you can easily manage promotions, special offers, or rewards towards the loyalty of customers while you keep your accounting and sales accurate. There are two main ways of discounting through which you can easily apply them in QuickBooks Online for a specific product or service, or to the entire invoices or sales receipts.
- Consider the discounts as 10%, 20%, etc.
- The fixed price is $200, $500, etc.
Setting Up the Discount Feature in QuickBooks Online
Here are some simple steps for setting up the discount feature in QuickBooks Online, in the following ways.
- Click on the icon “Settings” which was in the top right corner.
- Choose the Account and Settings for selection.
- Press the Sales button.
- Look over to find out the Discount option, which was present in the Sales form content section.
- Turn it on to Save it as Done.
Steps to Apply Discount Invoices and Sales Receipts in QuickBooks Online
Here, we’ll help you learn about the whole process in a step-by-step method, from start to end, so that you will be able to discount invoices and sales receipts in QuickBooks Online. Just follow these instructions, mentioned below.
Applying Discounts in Invoices
Open a New Invoice
Click on the “+ New” icon button for invoices to select the date, customer, and add other items or services.
Choose How to Apply the Discount
You have two ways to apply a discount.
- Line-item discount: If you want to discount a specific product or service, add a discount directly in that item’s line.
- Total invoice discount: To reduce the entire invoice amount, use the discount field near the bottom.
Choose Discount by Percent vs Fixed amount
- For a percentage, enter something like 10%.
- For a fixed amount, type the value, for example, $500.
Example
- $5,000 Item’s Total Price
- $4,500 after applying 10% ($5,000 * 0.10)
- $4,500 after applying $500 with a fixed Discount ($5,000 – $500)
Check the Tax Calculation
If your tax settings apply any discounts before tax, the taxes will be calculated on the reduced total price of items. Using a discount can reduce the taxable base because the rules of tax vary by region. To set up accounts before saving, double-check the tax line. If you need to know anything more, then preview the invoice once to confirm the final tax.
Save and Send
- Click Save and Close or Save and Send.
- Your invoice will now show the discount clearly to your customer.
Edit or Remove a Discount Later
- Open the saved invoice section, then press the Discount Field or line button.
- After that, adjust or delete the value and lastly, save it for confirmation.
If a payment was already made, QuickBooks will ask you to adjust the payment amount.
Tips
- Create a Discount item to track a specific promo then, like products & services for a new service discount.
- To avoid mistakes, organize whether the staff entered the percentage or fixed amounts.
- Before sending to confirm the totals and taxes, preview receipts.
Apply a Discount on a Sales Receipt
Sales receipts work almost the same way as invoices, except they’re used when the customer pays immediately.
Open a Sales Receipt
Click on the “+ New” icon button for Sales Receipt to select the date, customer, and add the quantities of products or services.
Where to put the discount
You can add the discount in one of two ways.
- Use the Discount field near the bottom (total discount).
- Or add a Discount line item directly below your products.
How to Enter Percentage or Fixed Amount
In percentage discount, QuickBooks helps in converting the 10% to an amount. But, while the discount applied is a fixed amount ($500), it subtracts the currency amount from the total price of the item.
Example
- $3,000 Item’s Total Price
- $2,700 after applying 10% ($3,000 * 0.10)
- $2,700 after applying a discount $300 with a fixed Discount ($3,000 – $300
Verify the Tax
Your tax amount will depend on whether discounts apply before or after tax in your setup. Always check this line before saving.
Save and Deliver the Receipt
Click Save and Send (to email it) or Save and Close (to record it). The discount will now appear on your customer’s copy.
Edit or Delete the Discount
To make changes later.
- Open the sales receipt.
- Update or remove the discount field or line.
- Save your changes.
If payment was already processed, adjust it to match the new total.
Common Issues and Quick Fixes When Applying Discount Invoices and Sales Receipts in QuickBooks Online
Here are some common issues and Quick fixes when applying discount invoices and sales receipts in QuickBooks Online which are mentioned below.
Problem: The Discount Field Doesn’t Show on the Invoice or Sales Receipt.
Quick Fix: Turn on discount under Sales form settings.
Problem: Discount Amount Is Calculated Wrong.
Quick Fix: Check if tax is set to apply before or after discounts.
Problem: Discount Doesn’t Show Up in Reports.
Quick Fix: Verify your discount item is linked to the correct account.
Problem: The Invoice or Sales Receipt Total Doesn’t Match the Payment.
Quick Fix: Adjust recorded payment.
Conclusion
In conclusion, we hope this blog helps you to know “How to Discount Invoices and Sales Receipts in QuickBooks Online.” Through this process, you’ll learn the process of applying and tracking the discount in different ways, for which you can accordingly adjust it. If the query remains, don’t worry, just contact the support team for expert advice.