discount on an invoice line item

Welcome to the Community, @Derek_D.

You can consider using a discount line item to apply a discount to one or more items on the invoice. To do that, you'll need to create a discount item first before applying it on the invoice. Let me guide you how.

1. Click the Gear icon.
2. Select Products and Services.
3. At the top right, select New.
4. Choose Service for Products/Services type, then complete the information needed.

• In the Name field, enter Discount. If you plan to create multiple discount percentages, you can enter the percentage and Discount for the name (Example: 10% Discount).
• In the Sales price/rate field, enter the discount amount as a negative. (You can manually calculate the discount amount based on the percentage promo)
• From the Income account drop-down, select Discounts given account.
• In the Sales tax category section, it depends on your state if sales tax is calculated after discounts are applied then mark the discount line taxable.

      5. Click Save and close.

Once done, you can now use the Discount item on an invoice. Here's how:

1. Click the Plus (+) icon.
2. Select Invoice.
3. Choose the appropriate customer.
4. Add the product and services, then enter the total amount of the item.
5. Select the Discount item on the next line.
6. Click Save and close.

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help. 
 
Feel free to visit us again if you have any other questions with QuickBooks. We're always here to help.

Hi, Derek_D

Create a service type Item called Discount and connect Income account - Discounts ( expense type ) and Expense account - Uncheckamrk OR Discounts received ( income type ) for bill/expenses screen.

For, Discount item select the out of scope tax rate and enter the discount amount as the negative amounts

Now you can select the Discounts as you need for each line items 

to display the total discount amount customize the invoice 

Note do not checkmark Total discount on the invoice customization instant create your own custom field and enter the total discount amount.

Check the attached sample invoice 

Note: 

Should taxes be applied before a discount or after?

in the above solution Selling price is subjected to Sales taxes therefore
speak to your tax consultant if you want to exclude sale taxes on selling prices
and use net price after discount
If taxes are excluded selling price is
Sales price (-) Trade Discount = Net Selling Price
No Discount item on the invoice.

Trade discount transactions are not included in QuickBooks.

* OR

use tax codes/rates for Trade discount check the attached sample invoices comments below

transactions are entered in QuickBooks and on the invoice as well.

Comment back for further clarifications / to discuss.

Hi Mark, 

Thank you for your reply 

I actually did try this method but the discount rate seems to only be a dollar amount, and not percentage. ...I need to have percentages ie. 10%,15%, 20% etc ...I wouldn't be able to manually calculate the dollar amount of each one since my invoices currently can have over 25 line items and creating 10-20 invoices per day the time is just too great to figure out the dollar amounts of each and make a line discount. 

..am I misunderstanding? - or is it possible to make a percentage discount line item?

Thanks so much!

Derek

Hello, 

thanks so much for your response 

..is there a way to make a percentage discount on a line discount item and not just a dollar amount?

I need 10% 15% etc apply to multiple items and so a dollar amount won't work since I have 1 unit rate, times multiple units @ 15% off - for sometimes over 25 different items we sell on the same invoice

Any help would be great!

Thank you!

Derek

Derek,

read my next comment below

Derek, use your own invoice template for customization and match the fields to QuickBooks Online fields check the attached sample invoice.

To access the sample invoice templates move to the Gear icon right top >   List - All lists > Custom form styles > click New style dropdown menu > Import style > click  Download instructions & samples

under the QTY/DISCOUNT column enter the percentage (% will be displayed as decimals ), under the RATE column enter the amount applicable for the discount, QBO will calculate the amount for you and record the relevant transactions.

Note Only the total discounts you need to enter manually in the custom fields if required.

Hi, Derek_D

Create a service type Item called Discount and connect Income account - Discounts ( expense type ) and Expense account - Uncheckamrk OR Discounts received ( income type ) for bill/expenses screen.

For, Discount item select the out of scope tax rate and enter the discount amount as the negative amounts

Now you can select the Discounts as you need for each line items 

to display the total discount amount customize the invoice 

Note do not checkmark Total discount on the invoice customization instant create your own custom field and enter the total discount amount.

Check the attached sample invoice 

Note: 

Should taxes be applied before a discount or after?

in the above solution Selling price is subjected to Sales taxes therefore
speak to your tax consultant if you want to exclude sale taxes on selling prices with discount
use net price after discount
If taxes are excluded selling price is
Sales price (-) Trade Discount = Net Selling Price 
No Discount item on the invoice.

Trade discount transactions are not included in QuickBooks.

OR

use tax codes/rates for Trade discount check the attached sample invoice

transactions are entered in QuickBooks and on the invoice as well.

Comment back for further clarifications / to discuss.

Should taxes be applied before a discount or after?

in the above solution Selling price is subjected to Sales taxes therefore
speak to your tax consultant if you want to exclude sale tax on selling prices
use net price after discount
If taxes are excluded selling price is
Sales price (-) Trade Discount = Net Selling Price
No Discount item on the invoice.

Trade discount transactions are not included in QuickBooks.

OR

use tax codes/rates for Trade discount check the attached sample invoice

Comment back for further clarifications / to discuss.