Credits and Discounts from suppliers
How do I apply credits and discounts received from suppliers?
Entering a credit is similar to entering a bill. Choose Enter Bills from the Activities menu and select Credit instead of Bill in the window that appears. Create the credit just as you would a bill. When you want to pay a bill to that supplier, choose Pay Bills from the Activities menu. In the window that appears, click to the left of both the bill and the credit. QuickBooks applies the credit to the bill, and reduces the amount you owe.
Tip: In the Pay Bills window, change the Sort Bills By option to Supplier in order to group transactions to the same supplier.
You can record and apply a discount on supplier bills directly from the Pay Bills window.
From the Activities menu, select Pay Bills. In the Pay Bills window, select a bill and click on the Discount Info button. You use this window to apply a discount to the bill you have selected. The window shows a suggested discount that QuickBooks has calculated based on the payment terms you have with that supplier. You can accept the suggested discount or enter a different amount.
To apply a discount:
1) If necessary, change the amount shown in the Amount of Discount field.
2) In the Discount Account field, enter the name of the account you use to track discounts received from suppliers. (This information is required.)
3) Click OK.
Note that QuickBooks reduces the Amount Due for the bill in the Pay Bills window, reflecting the discount you just entered.