Configuring Price Rules for QuickBooks Online!

QuickBooks Online Price Rules allow users to offer discounts (or higher prices) on specific products to types of customers. Users can set the amount of time the rule is in effect or make the rule permanent for specific customers or customer types.

Some possible uses for pricing rules are:

  • Seasonal discounts like summer sales or back-to-school sales
  • Discounts for specific fields like education or law enforcement
  • Different price rules for marketplaces because of fees
  • Prices based on the employee who performed the service

Turn on Price Rules

To get started, you’ll need to enable pricing rules in QuickBooks Online. Go to the Gera icon > Company Settings > Sales > Turn on price rules.

Gear Icon Account and Settings

Price Rules setting

Set up and Assign Customer Types

You’ll also want to set up and configure customer types if you’re planning on setting up price rules based on customers types.

For instance, you can create a new type of customer called Teachers. Customers who are assigned this type will receive the discount you specify in the price rule.

To create Customer Types, go to Sales > Customers > Customer Types. If this is your first customer type, you’ll need to click on New Customer Type.

Sales to Customer types

New customer type

Once you’ve configured your customer types, you’ll need to assign these types to your customers.

Select your customers and use batch actions to quickly assign customer types to your customers.

Select Customer Type

Once you’ve assigned types to your customers, you can set up price rules for those customer types.

You can’t assign more than one type to a customer, so any new type you assign will override the previously assigned type.

Enable the Customer Type column through the gear icon to make viewing types more convenient.

Customer Type Column

Create a Price Rule

For this example, we’re going to create two different price rules: a rule for a promotional period and a rule for a discount for Teachers.

The process to create price rules is essentially the same for any type of discount or price increase you want to create. For instance, service businesses may create price rules with higher costs for after-hours services (like locksmiths and plumbers).

Let’s start by creating a price rule for a back-to-school sale that runs through the month of August.

To get to your price rules, click on the Gear icon > All Lists > Price Rules > New Price Rule. Alternatively, you can go to Sales > Products and Services > More > Price rules.

Price Rules setting

We’ll create a price rule for a back-to-school sale. Don’t forget to save your rule when you’re done entering the details.

Price Rule settings

You can view all the original prices and the sales price with the rule once you’ve selected your inventory.

Price rule adjustment

Any sales document you create that falls in the promotional period will have the adjusted price instead of the original sales price.

If you don’t have a sales price entered for your inventory items, you’ll want to go back and do that now.

Next, we’ll create a permanent price rule (leaving the date fields blank) for Teachers. This customer type will have a 15% discount.

Price Rules Teachers

If you happen to have price rules that overlap, you’ll be prompted to select the rule to apply on the sales document.

This may happen if you have a price rule for a 15% discount for all teachers and another price rule for your back-to-school sale, as in this case. When this happens, you’ll see a warning symbol on the sales document, and you can select which rule to apply for the transaction.

Price Rule Warning

Select price rule to apply

Select which rule you want to apply to the sales document and then save. Don’t forget to receive payment if you’re creating an invoice and have already been paid!

There are some other considerations you’ll have to make when deciding whether to use price rules.

  • You can’t record the discount given to a different account.
  • You can’t add bundles to price rules. Instead, you’ll need to add the individual items to the price rule, and when you add the bundle to the invoice, the discount will apply.
  • Recurring transactions are not affected by any changes to price rules. That means any changes to the rule or any expiration on a price rule will not affect the transaction. You’ll have to edit recurring transactions to change them.

Price rules can save you a lot of time when it comes to documenting your transactions. Not only will they save you time, but these rules will also minimize any mistakes employees may make from data entry.

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