Enter a discount as a separate line item

Discounts can be entered as separate line items rather than as adjustments to the price of individual line items on transaction forms related to sales, purchases, and refunds. These include:

  • Sales quotes
  • Sales orders
  • Sales invoices
  • Credit notes
  • Purchase quotes
  • Purchase orders
  • Purchase invoices
  • Debit notes

The option lets you show customers overall discounts you are extending. It also lets you record separately a discount a supplier has extended to you. Rather than associating a discount with a specific line item, this feature may be helpful distinguishing the effects of promotional discounts from costs and sales prices in profit margin calculations for inventory items.

To enter a discount as a separate line item, check the Discount box when creating a transaction. Select the Exact amount option:

Add a line item for entry of the discount:

  • Select an appropriate Account where the discount will be posted, such as Discounts, Advertising and promotion, or Miscellaneous expenses.
  • Describe the discount in the Description field.
  • Leave Qty and Unit price fields blank.
  • Enter the monetary amount of the discount (in the currency of the customer) in the Discount field as a positive number.
  • A Tax code may or may not be applicable to the discount, depending on local regulations. In many cases, it will be, because discounts are reductions to prices. If one is, be sure that all line items on the invoice are taxable at the same rate.

Notes
Manager will not calculate the discount amount for you from other line items or the transaction subtotal. You must determine the discount manually or enter the calculation directly into the Discount field.

Discounts of specific amounts and descriptions can be set up as non-inventory items.

The discount amount will appear on the completed transaction in a Discount column. The amount being subtracted from the total will appear as a negative number in the Amount column.

Example
Brilliant Industries sells five ceramic lamps (inventory code 101) to a wholesale customer, so no sales tax is due. Under terms of this customer’s incentive plan, Brilliant extends an overall discount of 295:

Discounts entered this way will be posted to the account selected without affecting other line items.

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