Step 1: Turn on the discount setting
QuickBooks automatically creates a Discounts given account in your chart of accounts to track the discounts you give. If you haven’t already, turn on the discount setting.
- Select Settings ⚙ and then Account and settings.
- Select Sales.
- In the Sales form content section, select Edit ✎.
- Turn on the Discount setting.
- Select Save and then Done.
With this setting on, the optional discount field displays in the subtotal of your sales forms. 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 invoice as a percentage or a flat amount. Or, you can add a discount to your invoice as a line item where you can include a description about what the discount is for.
Add a discount to the subtotal on your sales forms
- Select + New.
- Select Invoice, Estimate, or Sales receipt.
- Fill out the form and add your products or services in the Product/Service column.
- 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.
- Enter the percentage or amount you want to discount in the discount field.
- 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.
Step 1: Create a discount item
- Select Settings ⚙ and then Products & services (Take me there).
- Select New.
- Select Non-stock or Service for the type.
- 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.
- In the Sales price/rate field, enter the discount as a negative amount. Keep in mind, this is an amount and not a percentage.
- From the Income account ▼ dropdown, select Discounts given account that QuickBooks created when you turned on the discount setting.
- Select an appropriate VAT rate so that the discount is nontaxable.
- Select Save and close.
Step 2: Add the discount item to your sales form
- Select + New.
- Select Invoice, Estimate, or Sales receipt.
- Add your products or services in the Product/Service column.
- 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.
- Fill out the rest of the form.
- Select Save and send or Save and close.