Microsoft KB Archive/265135

= Money: How to record a conditional discount for a payment =

Article ID: 265135

Article Last Modified on 1/27/2007

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APPLIES TO


 * Microsoft Money 99 Personal & Business Edition
 * Microsoft Money 2000 Business & Personal Edition
 * Microsoft Money 2001 Deluxe and Business Edition
 * Microsoft Money 2002 Standard Edition
 * Microsoft Money 2002 Deluxe and Business Edition
 * Microsoft Money 2003 Deluxe and Business Edition
 * Microsoft Money 2004 Small Business Edition

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This article was previously published under Q265135



SUMMARY
This article describes how to record a conditional discount for a payment transaction when the customer meets the terms for the discount.

Note You cannot create new payment terms in the versions of Microsoft Money that are listed in the &quot;Applies to&quot; section.



MORE INFORMATION
To record a conditional discount when you receive a payment from a customer, you must first create a Discounts account, a Discount payee, and a Customer Discounts subcategory in the Cost Of Goods payment category.

Create a Discounts account

 * 1) In Microsoft Money 99 and in Microsoft Money 2000, click Accounts on the Money navigation bar.

In Microsoft Money 2001, Microsoft Money 2002, and Microsoft Money 2003, click Accounts & Bills, and then click Account List.
 * 1) In the left pane, click Set up accounts.
 * 2) Click Add a New Account.
 * 3) Click Not held at a bank, broker, or other financial institution - for example, Accounts Receivable or a house account, and then click Next.
 * 4) Click Other, and then click Next.
 * 5) In the Name box, type Discounts, and then click Next.
 * 6) Click Business, and then click Next.
 * 7) In the What is the balance for this account? box, type 0 (zero), and then click Finish.

Create a Discount payee

 * 1) In Money 2000, click More on the Money navigation bar, and then click Categories & Payees.

In Money 2001, Money 2002, and Money 2003, click Accounts & Bills, and then click Categories & Payees.
 * 1) In the left pane, click Payees.
 * 2) At the bottom of the Money window, click New.
 * 3) In the Payee box, type Discount, and then click Next.
 * 4) Click to select the Customer or Vendor check boxes, and then click Next.
 * 5) Click Next.
 * 6) Click Next, and then click Finish.

Create a Customer Discounts subcategory

 * 1) In the left pane, click Categories.
 * 2) In the Category column, click Cost of Goods, and then click New at the bottom of the Money window.
 * 3) Click Add a subcategory to Cost of Goods?, and then click Next.
 * 4) In the Name box, type Customer Discounts, and then click Next.
 * 5) Click Business, and then click Next.
 * 6) In the list of Schedule C expense types, click Returns and allowances, and then click Next.
 * 7) Click I know I'm eligible for this deduction. Include it on my Schedule C report, and then click Finish.

When a customer meets the terms for a discount, record the discount as a payment from the customer that you deposit into the Discounts account, and then record the payment from the customer as a separate payment that you deposit into one of your business accounts.

Record a discounted payment

 * 1) On the Money navigation bar, click Business.
 * 2) Click Record payment for an invoice.
 * 3) In the left pane, click Receive payment for invoice.
 * 4) In the Customer box, click the name of the customer who sent you the payment.
 * 5) Calculate the discount, and then type that amount in the Amount box.
 * 6) In the Date paid box, type the date on which you received the payment from the customer.
 * 7) In the Account box, click Discounts, and then click Next.
 * 8) If you have to, allocate the payment to the appropriate invoice, and then click Enter.

Otherwise, click Finish, and then continue to step 9.
 * 1) Click Next, and then click Finish.
 * 2) Repeat steps 2 through 8 to record the payment that you received from the customer and deposit it into one of your business accounts.

To pay the balance of the Discounts account to the Customer Discounts subcategory in the Cost of Goods payment category:
 * 1) On the Money navigation bar, click Accounts.

In Money 2001and later, click Accounts & Bills, and then click Account List.
 * 1) Click the Discounts account.
 * 2) On the Spend tab, click New.
 * 3) In the Pay to box, type Discount.
 * 4) In the Amount box, type the current balance of the Discounts account.
 * 5) In the Category box, click Cost of Goods.

Note Money 2002 and Money 2003 do not have a Subcategory box. You must select Customer Discounts in the Category box. All subcategories will also be listed.
 * 1) In the Subcategory box, click Customer Discounts.
 * 2) Click Enter.

Note Microsoft Money 2004 Small Business Edition has added Discounts. To see other features, visit the following Microsoft Web site:

http://www.microsoft.com/money/business

Additional query words: w_money money2k 8.0 1% 2% 10 net 30 Money99 Money2000 Money2001 Money2002 Money2003

Keywords: kbenv kbhowto KB265135

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