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Use discount and subtotal items on an Invoice

SOLVEDby QuickBooks8Updated over 2 years ago

Learn how to create and add a discount item to an invoice. 

In QuickBooks, not only can you apply a discount while recording a payment, you can also add a discount item directly on the invoice. 

If you’ve never used a discount item, here’s how:

Step 1: Create a Discount item

  1. Select the Lists menu, then select Item list 
  2. Select the Item button, then select New
  3. Select Discount from the type dropdown and fill out the needed info. You have the option to set a discount percentage or specified dollar amount. You’ll also need to specify the account to use to track your discounts.  
  4. Select OK when you're ready.
Important: placement of your discount item determines how your discount is applied.  

If you need a discount to apply to the sum of multiple items, we recommend that you use a Subtotal item followed by your discount item for the discount to apply to the correct amount.

Step 2: Add the discount item to your invoice

QuickBooks calculates a discount based on the item or items above. If you need to apply the discount only on certain items, you must subtotal the items before entering a discount item.

Important for set dollar amount discount:: if other items are listed between the discount item and what the discount should be applied to, QuickBooks applies the discount to every item in-between proportionally (item amount as a fraction of the overall invoice total), which could impact the way your sales tax is calculated.

Option 1: Discount for a single item

  1. Place your product or service item on your invoice as you normally would.
  2. On the line immediately after, place your discount item.
  3. Make sure the tax, rate and amount shows your intended results. Otherwise, you may need to edit the item you created in Step 1.

Option 2: Discount for multiple items

  1. Place your items on your invoice as you normally would.
    Tip: if you have multiple items but only wish to discount a few, place those items first on the invoice.
  2. Once you have your items ordered, place the Subtotal item on the line immediately after. QuickBooks will add up the amount of all the items preceding the subtotal item.
  3. On the next line, place your discount item.
  4. Make sure the tax, rate and amount shows your intended results. Otherwise, you may need to edit the item you created in Step 1.

If you have other items that shouldn’t include the discount, you can place them after the discount item before you save your invoice.

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