QuickBooks Guru's

[Terry D EA]

I have been using QuickBooks Accountant version and have been a QB Pro Advisor since 2003. With that said, here is my delimma, how do you force QuickBooks to allow you to use a contra Accounts Receivable for early payment discounts? It is easy enough to setup the early payment account as a sub to the AR and if you could post to it, each entry would be a credit entry to offset the Accounts receiveable for that particular customer who took advantage of the early pay discount. However when you setup the discounts to record the discount in the contra AR account, you receive an error telling you that you are posting to an invalid account and that discount accounts are typically income or expense accounts. I have one client that has set this up as a negative income account. Doing this is okay but make the financial statements confusing and out of order. Also, you have to move alot around when preparing the tax return. If anyone know a trick here, let me know. Same problem will exist when trying to use an allowance for doubltful accounts setup.

[OldJack]

>>and that discount accounts are typically income or expense accounts.<<

Have you ever questioned why Quickbooks will not let you do that? Don't you think the error message telling you how discounts are typically handled means something? You need to review your accounting books.

[ILLMAS]

Here is how to set it up in QB

http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage/Core/Payments/task_payment_discount.html

You first have to setup the discount

http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage//Core/Items/task_items_disc.html

Hope this helps

[Terry D EA]

Thanks MAS, I know how to do the set up of discount items. I also understand the logic behind a discount expense or income account and the outcome is the same.

[michaelmars]

A few years ago i set up allowance for doubtful accounts on QB for a client. Every once in a while i pay with his file trying to get rid of them, these customers when bankrupt. No matter what i try it screws up the books. i can't figure out a way to get rid of the allowances, it doesn't let me apply them to the receivable or anything.