Invoicing and receipts

Adding a discount on an invoice total

Learn how to add a fixed amount discount applied to the total amount of the invoice.

Step-by-step instructions

To add a fixed amount discount on an invoice total:

  1. When creating an invoice click on the + Discount on total near the invoice total.
  2. In the Select account dropdown, choose the account you'd like this discount to be booked against. For example, choose the 408 Discount account if you'd like the discount to be shown against this account on the Profit and Loss statement.
  3. Enter the discount amount
  4. If the discount is subject to VAT, click the Options link to open additional options, then choose the tax rate that should be applied to the discount. You can also choose the Cost center that you'd like the discount to be booked against.
  5. Save the invoice.

Journal entries generated by the discount

A discount of 100 subject to 15% VAT (i.e. 115 VAT inclusive) will generate the following journal entries:

Accounts Receivable115

Discounts on quotes

You can also add fixed-amount discounts on quotes. When you convert a quote to an invoice, the discount will be copied over.