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Add a discount to an invoice or sales receipt in QuickBooks Online

SOLVEDby QuickBooksQuickBooks Online9Updated 2 weeks ago

Learn how to discount invoices and sales receipts.

Want to give your favourite customer a discount? You can easily discount a percentage of an invoice or sales receipt.

And if you have set discounts with fixed prices, we'll also show you how to add them as a line item on your form. We’ll show you how to set up and apply discounts in QuickBooks Online.

Step 1: Turn on the discount setting

When you turn on the discount setting, QuickBooks automatically creates a Discounts given account in your chart of accounts to track any discounts you give to customers.

If you haven’t already, turn on the discount setting.

  1. Select Settings ⚙ and then Account and Settings.
  2. Select the Sales tab.
  3. In the Sales form content section, select the pencil ✏ icon.
  4. Turn on the Discount setting.
  5. Select Save and then Done.

With this setting on, the optional discount field displays in the subtotal of your sales forms, but your customer will only see it if you add the discount to the field.

Step 2: Set up and apply discounts

There are two different options for adding a discount to your sales forms. You can add a discount to the subtotal of your sales form as a percentage or value. Or, you can add a discount to your sales form as a line item where you can include a description about what the discount is for.

Here’s how to set up both options.

Add a discount to the subtotal on your sales forms

After you’ve turned on the discount setting, you’ll see the discount field below the subtotal on estimates, invoices, or sales receipts. Here’s how to apply a discount on a sales form:

  1. Select + New.
  2. Select Invoice, Estimate, or Sales receipt.
  3. Add your products or services in the Product/Service column. Then fill out rest of the sales form.
  4. To record a discount, select Discount percent to enter the discount as a percentage. Or select Discount value to enter the discount as a specific amount.
  5. Enter the percentage or amount you want to discount in the discount field.
  6. When you're finished, select Save and send or Save and close.

Add a discount as a line item on your sales forms

If you offer specific or repeating discounts, you can add a discount to your invoice, estimate, or sales receipt as a line item that includes a description.

Note: You can only use this method for whole amounts, not percentages.

Here’s how to set up and add the discount.

Step 1: Create a discount item

  1. Select Settings ⚙ and then Products and Services.
  2. Select New.
  3. Select Non-inventory or Service for the type.
  4. Enter the name “Discount” in the Name field. If you want to create multiple discount items, give each discount a unique name so they're easy to tell apart.
  5. In the Sales price/rate field, enter the discount as a negative amount. Keep in mind, this is an amount and not a percentage.
  6. From the Income account ▼dropdown menu, select the Discounts given account that QuickBooks created when you turn on the discount setting.
  7. Select an appropriate tax rate so that the discount is nontaxable.
  8. When you’re done, select Save and close.

Step 2: Add the discount item to your sales form

  1. Select + New.
  2. Select Invoice, Estimate, or Sales receipt.
  3. Add your products or services in the Product/Service column. 
  4. Then, add the discount item you just created in the Product/Service column. You can adjust the discount if you need to, just make sure it's a negative amount.
  5. Fill out the rest of the form. 
  6. When you’re ready, select Save and send or Save and close.

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