How to Use a QuickBoks Discount Item to Apply Nonprofit Scholarships
A nonprofit wanted to know how to show that they're providing scholarships to members who can't afford to pay fees for some activities. They need to track both the fee income and the scholarship expense in QuickBooks.
Create a QuickBooks expense account named Scholarships, and link that account to an Item of the type Discount, also named Scholarships. Don't put an amount on the item unless you have a specific amount designated. Create the sales transaction by entering the item for the fee and then enter the scholarship discount item. If the item doesn't have a pre-set amount, enter the amount you're awarding; QuickBooks automatically enters a minus sign because the item is of the type Discount.