How to Add a Discount to an Invoice in QuickBooks

QuickBooks is a globally recommended small business accounting software that businesses of all classes use for managing income and expenses while keeping track of the financial health of their organization. This smart accounting application can be used for invoicing customers, paying bills, generating reports, including preparing taxes. The QuickBooks product range also encompasses a myriad of features that work absolutely for all kinds of users, right from a freelancer to a midsized businesses.

What is Discount?

Discount is the deduction from the total amount of the product which is offered by the seller to its customer. This can be provided in an attempt to reward the customer, which, in turn, will augment the sales and customer.

Steps to Add Discount to an Invoice or a Sales Receipt in QuickBooks

Here are a few steps given below for the Discount on an Invoice or a Sales Receipt in QuickBooks accounting software.

Step 1: Activate the Discount Option

If it’s inevitable to make use of the discounts function for your favorite or valued customers, you need to turn it on:

• As a first step, you are suggested to visit the setting option and thereafter account and settings.
• After that, in the second step, you are required to select the sales tab in the menu.
• Once you are done with the aforementioned steps, go to the pencil icon to make corrections in the Sales Form Content section
• And now, choose the checkbox “Discount” to turn it
• And in the last step, choose Save followed by Done.

The discount s fields will be added to the invoices and sales receipts once you follow the above-given steps. QuickBooks Online application also enables the end-users to effectively create the Discount to the given account. This enables QuickBooks users to keep track of the chart of accounts.

Step 2: Discount Application

If you want to reduce a specific percentage or amount. Here you can edit the discount field on the invoice or receipt:

• In the first step, choose the + New button.
• And after that, select the Invoice or Sales Receipt and products and services.
• Key in the remaining information in the given fields and elect the Discount value/Discount percentage. Once elected, key in the decided discount as a specific amount or a percentage.
• And now you need to mention the amount you are willing to reduce in the reduction field.
• If you are not willing to discount the total prior to the calculation of the sales tax, so you are required to opt for the arrow icon which is present next to the discount field.
• And in the last step, you are suggested to hit the Save & Send or Save & Close button to complete the ongoing process.

Add a Discount to an Invoice or Sales Receipt in QuickBooks Online

A percentage of an invoice or sales receipt may be discounted. We will also demonstrate how to include set discounts with fixed pricing as a line item on your form if you have them. The experience you have with estimates and invoicing will determine how you set up and apply discounts.

Set Up and Add Discounts with the New Layout

You may now immediately toggle the discount option on or off on your estimate or invoice using the latest version of estimates and invoices. To add a discount to a sales receipt, however, requires a somewhat different process.

Add a Discount to the Subtotal on an Invoice or Estimate

1. Begin by selecting + New.
2. Then you have to select Invoice or Estimate.
3. If you want to add a discount to the invoice or estimate, then you have to select Manage
4. Now you have to select Invoice settings or Estimate settings and then you have to choose Totals.
5. To add the discount field to your invoice or estimate, enable the Discount setting.
6. Fill out your estimate or invoice.
7. Choose $ for a flat discount or % for a percentage discount for the discount.
8. Then you have to select Save.

Set Up and Add Discounts to Sales Receipts

You must ensure that the discount setting is switched on globally for sales receipts.

Step 1: Turn on the Discounts Setting

1. Begin by selecting Settings, and then you have to select Account and Settings.
2. A sales or invoices tab should be chosen.
3. You have to select Edit, in the sales form content.
4. Then you have to turn on the Discount setting.
5. Now you just have to select Save and then click on Done.

Note: It should be noted that disabling discounts directly in an invoice or estimate also disables them globally.

Step 2: Apply a Discount to a Sales Receipt

You can apply a discount as a percentage or as a dollar amount on a sales receipt once the discount setting is activated.

1. Firstly, you have to select +New.
2. Then you have to select Sales Receipt.
3. Add your goods or services to the Product/Service column after filling out the form.
4. Select Discount percentage to enter a discount as a percentage when recording one. You can also enter the discount as a precise dollar amount by choosing Discount Value.
5. In the discount field, enter the percentage or dollar amount you wish to discount.
6. Select the double arrow next to the discount field to apply the discount to the total before sales tax is added. The order of the tax and discount fields is changed as a result.
7. Then you have to select Save.

Set Up and Add Discounts with the Old Layout

Step 1: Turn on the Discount Setting

To keep track of the discounts you grant, QuickBooks automatically adds a Discounts granted account to your chart of accounts. You should activate the discount setting if you haven’t already.

1. Then you have to select Settings and then you have to go to Account and Settings.
2. Then you have to select Sales.
3. Select Edit in the Sales form content section.
4. Now you have to turn on the Discount setting.
5. Then you have to select Save and then you have to click Done.

The optional discount field appears in your sales forms’ subtotal when this setting is enabled. Only if you enter the discount into the form will your customer be able to see it.

Step 2: Set up and Apply Discounts

For adding a discount to your sales forms, you have two different options. You have the option of adding a percentage-based or flat-rate reduction to the subtotal of your invoice. Also, you can add a line item for a discount to your invoice along with a description of what the discount is for.

Add a Discount to the Subtotal on Your Sales Forms

1. First, you have to select +New.
2. Then you have to select Invoice, Estimate, or Sales Receipt.
3. Add your products or services to the Product/Service column after filling out the form.
4. Select Discount percentage to enter a discount as a percentage when recording one. You can also enter the discount as a specific dollar amount by choosing Discount Value.
5. In the discount field, you have to enter the percentage or dollar amount you wish to discount.
6. Select the double arrow next to the discount field to apply the discount to the total before sales tax is added. The order of the tax and discount fields is changed as a result.
7. Then you have to select Save.

Add a Discount as a Line Item on your Sales Forms

If you provide repeated or specific discounts, you can add a line item for a discount with a description to your sales form. You can include the Labor Day discount and its description as a line item to the sales form, for example, if it is a $50 discount. Note: Percentages cannot be calculated using this method only entire dollar values can.

Step 1: Create a Discount Item

1. You have to first select Settings and then you have to click Product and Services.
2. Then you have to select New.
3. After that, you have to select Non-inventory or Service for the type.
4. In the Name field, type Discount. Give each discount a distinct name so that customers can easily distinguish between them if you want to create many discount goods.
5. Put a negative amount for the discount in the Sales price/rate column. Remember that this is a dollar amount and not a percentage.
6. Then you have to select Discounts given from the Income account dropdown menu.
7. Select Nontaxable from the Sales tax category drop-down menu.
8. After that, you have to select Save and Close.

Step 2: Add the Discount Item to the Sales Form

1. You have to select +New.
2. Choose a Sales Receipt, Estimate, or Invoice.
3. Then you have to add your products or services in the Product/Service column.
4. Include the newly created discount item in the Product/Service column. If necessary, you can change the discount; just make sure it is a negative number.
5. Finish completing the form and then select Save.

Steps to Add a Discount Item with a Fixed Price

Below are a few steps enlisted to add a Discount Item with a Fixed Price:

If you have decided to set discounts for set amounts, you are required to create a new product item that you can swiftly add to sales receipts or invoices:

Step 1: Discount Item Creation

• Firstly, you are required to navigate to Settings and then choose Products and Services.
• Secondly, you need to create a new item by choosing the New option.
• Now, here in this step choose the Non-inventory or Service for the type and enter a name to the item Discount
• If you wish to create multiple discount items then you need to enter the different names so that they can easily be identified.
• Enter the discount as a negative amount in the Sale Price/Rate field.
• Keep a thing in mind that this is a dollar amount and not a percentage.
• Using the drop-down menu of the Income account, you have to select the Discount given account.
• QuickBooks will generate this account for you once the discount feature is activated.
• Here in this step, you are required to choose the Nontaxable option using the drop-down menu of the Sales tax category.
• And finally, hit the Save & Close option.

Step 2: Add the Discount to an Invoice or Sales Receipt

• Firstly, you are required to choose + New symbol.
• Secondly, choose the Sales Receipt or Invoice option.
• Now, you must add the Discount item you have just created.
• If needed, you can also change the discount amount.
• You have to only make sure that it should be a Negative amount.
• Once you’re done with the above steps then select Save & Send or Save & New option (if you have to create more new invoices or sales receipts).

I hope this article has covered all the main steps on how to add a discount to an invoice or sales receipt in QuickBooks Online. The team will be committed to serving your doubts all round the clock.

In this article we read about how we can utilize the QuickBooks Accounting Software to assist the user to save time, money and efforts. Optimize the automated experience by paying the invoices on timely basis.

It is important to understand the process in detail about how to do this with the version of QuickBooks. Once you have the system down, get in as many discounts as possible to drive revenue and strengthen the business between customer and vendor. In case you are facing any trouble to understand the process, you can always reach out to our Dancing Numbers expert team without any hesitation at our LIVE CHAT option.

---