Sales discounts are given to the customers by the sellers when they make the early payment i.e. in the mentioned discount periods. Other terms for the sales discounts are cash discounts and early payment discounts. Sales discounts in one of the techniques to encourage customers to make an early payment.
Sales discounts are recorded in the contra revenue account from the accounting point of view. For calculating the net sales, the debit balance of sales discount will be deducted from the Gross sales.
For the creation and set up of the sales discount and adding it up to the invoice, you need to follow the steps given in the below write-up.
Steps to Setup A Sales Discount in QuickBooks Desktop
Please refer to the below steps for setting up sales discounts in QuickBooks:
Total Time: 5 minutes
At the start, you need to click on the list > item list > item drop-down arrow at the bottom of the item list screen.
After step 1, you need to click on New > select Type drop-down > and select Discount.
In the third step, you need to enter the description and percentage or amount of the discount and select the tax code as taxable or non-taxable accordingly.
In the final step, you just need to click on OK.
For Adding the Discount Line Item to Your Invoice
If you want the discount line item to be reflected in your invoice, you need to follow the below steps:
- Step 1: First of all, click on Settings (Gear icon).
- Step 2: After that, click on Accounts and settings > sales tab > and click on the edit (pencil icon) under the sales form content section.
- Step 3: In the next step, put a mark or click the box next to the discount and click on save and Done.
This will lead to a discount line item appearing in the invoice.
For Adding a Discount line item in the invoice when you are using an invoice template:
The steps for adding a discount line item by editing the invoice template you are using are as follows:
- Step 1: At the initial step, you need to click on settings (gear icon).
- Step 2: After that select the custom form style and select the invoice template that you wish to use.
- Step 3: Now in the next step, click on edit and then click on the content tab. After that, click on the pencil icon for editing the invoice at the bottom of the invoice.
- Step 4: Now you need to put a checkmark or click the box against the Discount and click on Done.
This should lead to adding a discount item to your invoice template.
I am sure the above article or write-up must have provided you with the required clarity on the process of setting up sales discounts and adding the discount line item in the invoice and invoice template in QuickBooks.
However, in case you still need further information on any point, you can dial a toll-free number at smbaccountants.com and the QB technical helpdesk will help you.