We have vendors that offer a discount for early payment. The discount amount shows in the terms, but our preference is NOT to automatically apply discounts. Reason: the vendor discounts the STATEMENT, not the individual bills.
With our current 2007 version of QB contractor edition our bills/credits were not being applied correctly - and some bills stay on the bill payment screen. After examining, I found out why.
When you select a bill and apply a credit - QB NOW CALCULATES AND APPLIES A DISCOUNT --- EVEN IF your preference is NOT TO AUTOMATICALLY APPLY DISCOUNTS/CREDITS.
The discount that was 'suggested' changes the listed amount to pay... but the preference to not apply discounts is in use, and somehow, and I am not sure just how, bills remain as unpaid. This, even though the bill payment check matches the vendor statement. I have to check with the data entry person to see if something 'corrective' was done to match up the bill payment check with the statement - which would explain the apparent lack of an error. But, still, discounts SHOULD NOT BE APPLIED automatically by QB if that preference is off. The "SET CREDITS" button should not set credits AND discounts.
End of rant.