This option allows you to apply a one-time subtraction from the previous line amount within the line item grid. Applicable taxes are always applied after the discount (example: applying a $10 discount to a subtotal of $100 means only $90 will be taxed).
Note the discount only applies to the line above it. If you wish the discount to apply to multiple items, you will need to calculate a subtotal first.
Note: This item is available in QuickBooks Desktop only.
To add this as an item, you will need to add a new item within the Items app, and choose Discount. If you do not see the Items app, you will need to get access permission for this app from your administrator. The Items app is found in the Accounting Lists Pack.
After you select Discount, you will be taken to the New / Edit Discount Item screen.
Item Name/Number*: Give a unique name for the discount.
Subitem of: You may wish to associate the discount with a particular item (for example, if you are having a sale on a particular product); you can create that association here.
Active Discount Item: Click on this option to ensure this item appears in the "Active" filter view in the Items list.
Description: Provide details about the discount (for example, the reason a discount is being offered) in this writable section.
Amount: Define the amount of the discount in this section, in dollars by default. You can also express this discount as a percentage clicking the % checkbox.
Tax code: Choose whether or not this discount should have taxes applied to it.
Account: Choose the account this discount applies to from this drop down list (populated from your QuickBooks).
Save & New: Saves the new or edited item and clears the fields above.
Save & Back: Saves the new or edited item and goes back to the previous screen.
Note: The discount line item amount will be empty until the transaction is saved. Once saved, then the discount amount will show the proper currency amount.