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:
- When creating an invoice click on the
+ Discount on total
near the invoice total. - In the
Select account
dropdown, choose the account you'd like this discount to be booked against. For example, choose the408 Discount
account if you'd like the discount to be shown against this account on the Profit and Loss statement. - Enter the discount amount
- 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 theCost center
that you'd like the discount to be booked against. - 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:
Account | Debit | Credit |
---|---|---|
Discount | 100 | |
VAT | 15 | |
Accounts Receivable | 115 |
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.