The use of Discount type items can often be enhanced by adding a subtotal after the discount showing the net price. The graphic above shows an invoice using the new Discount item. The discount amount will post to an income type account entitled, Discounts Given. In the graphic of the Discount item, this latter approach was used. Or, two, you can create a special income type account to track the amount of discounts. One, the discount posts to the same income account as the items you normally sell. Setting the discount item to taxable, would then cause the discounted items to accrue sales tax at the discounted price.Īnother setting is the account from the chart of accounts to which the discount item will post. The taxable merchandise will compute sales tax at the before discount sales amounts. If using the discount item to reduce the price of taxable items, and the discount item is set to a non-taxable code, sales tax will not be reduced by the amount of the discount. You must decide if the item, by default, is taxable or not. The following screenshot, shows the item setup screen after all the pertinent information is entered. The above screenshot shows the setup screen for a Discount type item. We can create a Discount type item.Ī Discount item would be used for a one-time or unusual event.Ĭases where a discount is always granted a certain customer, or a discount is given to reward early payment are more efficiently handled in other ways. Let’s start with a simple method to grant a customer discount directly on an invoice. Just as there are a variety of reasons for granting discounts, there are various ways to create them in QuickBooks. Discounts for special events, special customers, or special payment terms.

Add discount to quickbooks invoice