how do i enter discount allowed by suppliers. When a supplier gives a discount on early payments.

Hi there, Tamanna. You must first have a "Discounts Taken" account under Other Income in your Chart of Accounts (COA) or create one. After that, create a supplier's credit transaction under that category. Then, Pay Bills to apply the discount to the supplier's bill. 

Here's how:

1. Click the + New icon and select Supplier Credit.
2. Select the supplier who gives the discount. 
3. In the Category details section, look for the discount account you created under Other income. Or you can visit this article to create one: Add an account to your chart of accounts in QuickBooks Online.
4. Enter the necessary information for the supplier credit. Once done, click Save and close.
5. After that, proceed to Pay Bills.
6. Pick a Payment account first. Then, select the supplier's bill. 
7. You can see the discount under the Credits Applied column, deducting from the original amount you owe. After that, click Save and Close.
   

In the case that the bill has not yet been made, you can apply the discount by selecting the account you created in the Category Details from the bill transaction if you proceed with making one. Ensure that it has a negative sign to deduct it from the original amount of what you owe. This time, you don't need to create a supplier credit transaction. This is also applicable to expense and cheque transactions.

Please let me know if you have any additional questions by leaving a reply below.