A/R Workflow Transactions: Recording Payment And Applying Discount

 

Payment

You can use the Receive Payments form to record a payment which you’ve received for an invoice.
 

Follow these steps to record a payment:-

 

Step 1:

Go to Home screen or Customers menu and click on Receive Payments.
 

Step 2:

Click Received From dropdown arrow and select the customer’s name.
 

Step 3:

Now enter the Amount and make sure the date is correct.
 

Step 4:

Choose the Payment method.
 

Step 5:

You can also Enter the Reference or Check #. (Optional)
 

Step 6:

Put a check mark next to the invoice to select the Invoice(s) which has to be paid.
 

Step 7:

Now set any discount/credit you want to apply to the invoices.
 

Discount

A discount is a fixed amount or a percentage that you deduct from the amount that you charge your customer.
 

Early Payment Discount

You can apply a discount for early payment for the customers whose payment terms include a discount that is for the payment before the due date.
 

Follow these steps to do this:-

 

Step 1:

Click on Discounts and Credits.
 

Step 2:

You can change the amount of the discount. (Optional)
 

Note:

On the basis of your payment terms with the customer and the payment date, QuickBooks calculates a suggested discount amount. You can enter any discount amount you select and also you don’t have to use the suggested amount. However, the discounted amount can’t be higher than your original invoice.
 

Step 3:

Now enter the name of the expense account you use to track the discounts. (For e.g.- Discount Expense).
 

Step 4:

Now click on Done to record the discount.
 

Sales Discount

If you want to apply for a discount for anything (not for early payment), then you have to use sales discount.
 

Credits

If the customer has available credits, then you can use them and apply this credit during the processing of the payment.
 

Follow these steps to do this

 

Step 1:

Click on Discounts and Credits.
 

Step 2:

Mark the check on the credit you want to apply.
 

Step 3:

You can change the amount under the Amt to Use column, if you do not want to use the entire credit or if the credit amount is more than the customer balance.
 

Step 4:

Now Click on “Done” to record the credit.
 

Step 5:

Now enter Memo (Optional).
 

Step 6:

Click Save and Close.

Kristin is a content strategist at Techarex Networks. Kristin follows the B2B technology space closely and loves to write on the latest changes in technology, futuretech and fixes for day to day how to issues. Besides writing Kristin also loves music, moves and skating.

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