Quick Answer: What Account Type Is A Discount In Quickbooks?

What type of account is discount?

Accounting for the Discount Allowed and Discount Received When the seller allows a discount, this is recorded as a reduction of revenues, and is typically a debit to a contra revenue account..

How do I record a discount in QuickBooks?

Use the discount field on an invoice or sales receipt.Select + New.Select Invoice or Sales receipt.Add products and services. … Select Discount percentage or Discount value to enter the discount as a percentage or a specific amount.Enter the amount you want to discount in the discount field.More items…•

Are discounts considered an expense?

Definition of Sales Discounts Sales discounts are not reported as an expense.

Why are account types used in QuickBooks?

In QuickBooks, you use these accounts to categorize your transactions on everything from sales forms to reports to tax forms. The chart of accounts keeps the transaction history for each account and breaks down how much money you have (or owe). Here’s what you need to know to get started.