Now that the discount has been created, you can apply it to an item in an invoice. The example above does not constitute advice on how this should be configured, it is merely an example. Please check with your specific state requirements to determine which way to set this.
Selecting "Tax" means the discount is applied before tax is assessed for all taxable items on the invoice. Selecting "Non" means the discount is applied after the sales tax is assessed for all taxable items on the invoice. There are two settings to choose from, non and tax. Note: The one thing not addressed in the list above is Tax Code. Choose an account for the discount to be associated with.Ī discount item filled out with all the details for the discount.Enter the amount of the discount in dollars, or if it is a percentage, type the number and the percent sign in the box under "Amount or %".If desired, add a description for the discount.When applying discounts, be sure to use the specific discount items. If you have multiple discounts, it is a good idea to create a generic "Discount" item before creating more specific discounts as subitems so they are grouped together.If you plan to give multiple types of discounts, create a separate name for each so you can track their usage easily at the end of any year or other period of time. In the new item box, select "Discount" as the item type. In the item details, select "Discount" from the drop-down list under Type.At the bottom of the screen, click on the Item menu and select "New" from the pop-up menu.To add a discount item, open the Item List from within the Lists menu. In QuickBooks, click on the Lists menu and select "Item List".Applying a discount against all items in an invoice - creating a subtotal item and applying a discount to the subtotal.Īpplying a discount against a single item.Applying a discount against a single item - creating a discount item and applying the discount to an item.
Both types of discounts can be configured in QuickBooks and used at different times based on the needs of the business. The two main ways to apply discounts to invoices are by applying them against a single item and applying them against all items in the invoice. How to Add Discounts to Items and Invoices in QuickBooks Desktop This post discusses how both types of discounts can be applied, the ways they operate and how you can best use them in your business. QuickBooks desktop has two main ways to apply discounts - against items and against all items in an invoice.įor many businesses, there are reasons why you could implement both types of discounts to use at varying times. There may also be circumstances where you want to regularly offer discounts, say for military members, seniors or children. Perhaps a product arrived damaged or is without its original box. There are many reasons for offering discounts to clients.