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Quicken & Other Budget/Accounting Software/How to give the commission discount to my customer!


QUESTION: Dear Karin HOstetler!

I am LUCK. I am using QB 2010. I want to give "Commission Discount" to my customer. The total balance of the invoice is $1200. I must give 10% discount for this invoice, so what must I do to solve this problem?

Hope you understand what I mean!

I am looking forward to hearing from you as soon as possible!

Thanks a lot!

My best regards,


ANSWER: Hello Luck,
You will need to set up a discount item called "Commission Discount". When you set it up you will be able to set the percentage.  The income/expense account should be an income account called "returns and allowances".

When you enter the discount onto the invoice, you will need to subtotal the invoice (to get the total amount to be discounted) and then enter the discount at the very bottom.

Hope this helps


---------- FOLLOW-UP ----------

QUESTION: Now I go to the "Item List" and then create 2 new items called "Sub Total" and "Comm Discount". For the "Comm Discount", I choose the "Expense Account" for "Comm Discount".

After that I go to the invoice and do as in the image attached to you.

Please feel very kind and free to help to explain to me more clearly about my work.

Thanks a lot and I am looking forward to hearing from you.

Yours sincerely,


ANSWER: Hi Luck,
My apologies, I should have qualified the need for a subtotal. It would be needed only if you have more than one line item.

The only other thing would be to be sure that the account for the item "Comm Discount" would be an income account called Returns and allowances.

Hope this clarifies things.

---------- FOLLOW-UP ----------


Could you please tell what I must do to see the "Returns and allowances"? I was trying to find it but I couldn't find it. I really couldn't catch what you meant. Sorry for my being unaware of Quickbook.

In my view, I must create the "Comm Discount" and choose "Income Account", not the "Expense Account" as I informed you. Is it right?

Let me tell you why I decided to choose "Expense Account" for "Comm Discount". Because I think I must pay the discount amount to my customer, but you told me to choose "Income Account called Returns and allowances". I really don't understand it.

Thanks a lot and sorry for keeping you very busy with this.

Yours sincerely,


Hi Luck,
the only bad question is the one not ask! :)  
You may need to create an account called Returns and Allowances in the chart of accounts.  It would be an income account but would have a negative balance on the Profit and Loss Statement.

You can set the discount to an expense account called Commissions or Commissions paid. This would not change the NET profit at all, but by putting it as an income account it directly reflect the reduction in income, before looking at the Cost of Goods and Expenses.  This might be something you would want to ask your Accountant. They may have a preference as to how they want it to be.

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Karin Hostetler


I am a certifed member of QuickBooks® Professional Advisor group and can answer questions on Quickbooks® Basic and Pro, all versions through 2011. I do onsite, telephone and online consulting through my website at: Have a complicated issue that you can't put into one question? Consider a one time FREE 60 minute phone consultation. (724) 557-4652


I have worked with Quickbooks® since version 1, and have had a tip published on the Intuit website. I work exclusively with small business owners in setting up Quickbooks®, giving on-going support to tweak the reports, resolving data issues and correcting problems. I offer monthly, quarterly and yearly tune-ups to prepare the clients data for presentation to their CPA at year end.

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I have a degree in Administration and Management with 20 years of hands on business experience in many fields

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