Taking a Discount for Early Payment

If you pay your sales tax early or on time, you might have an opportunity to take a discount for the timely payment. If you simply reduce the amount you pay in QuickBooks, it will look like you didn't pay the entire bill and you'll still carry a liability on the books. Instead, you can record the amount of the discount first, offsetting the amount you owe; then when you're ready to pay the tax, the correct amount appears.

Open the Vendors menu and select Sales Tax.

Select Adjust Sales Tax Due from the side menu.

Enter the date on which the discount is taken.

Enter the name of the government agency to which you pay the sales tax.

Enter the account in which you record discounts.

Click the Reduce Sales Tax By option.

Enter the amount of the discount.

Click OK.

Did You Know?

You can record discounts in a separate account. Your company might have a specific account where discounts are recorded, or you might have to establish a new account that you can call Discounts Taken, or simply Other Income.

Show Me. QuickBooks 2006
Show Me QuickBooks 2006
ISBN: 0789735229
EAN: 2147483647
Year: 2005
Pages: 328
Authors: Gail Perry

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