How to create discount on bill total
add it as a separate line item with a suitable account selected.
U mean i add a an item in inventory with the name of [Discount] and use it in the bill as a separate line??
No, you do not add it as an inventory item. You just enter it into the description field with a negative unit price. Search the forum. Examples have been provided before.
u told me like this???
The discount line looks correct on the completed form. But since you did not show the Edit screen, I do not know if it really is. And I wonder why you have a payment against this invoice for more than the total. Is this a real invoice, or just an example?
make sure you select a suitable account for the Discount when you enter it as a line item.
We have to pay them advance amount then they send us stock so the amount is correct and the balance amount is correct. and here is edited screen shot
as informed earlier select Discounts under the Account column.
is that ok Tut???
You should read this guide Add freight-in to inventory item costs
Your discount is a bit like a negative freight-in charge ie it will reduce the cost of the goods in inventory.
Post the discount to the Inventory on hand account
Actually, you did not say explicitly whether you were asking about discounts on purchases or sales. I originally answered assuming you were asking about sales invoices. The only indication you are asking about purchases is the mini-statement on the bottom of the purchase invoice you showed in post #5, which mentions a payment.
When you are offered a discount by a supplier on a purchase, that is really just a price reduction. The reduction should be applied to the individual line items so their value in Inventory on hand is correct. @Joe91 was correct to say the discount should be applied there. But the trouble with applying a single discount is that you cannot spread it proportionally across all the line items involved.
The freight-in feature @Joe91 mentioned adds proportional cost to inventory items based on value. You cannot do that with discounts, so you will end up with as many discount line items as you are buying inventory items. It would be much easier, assuming your supplier gave you a lump sump discount, to calculate the effective discount rate and apply it to all the line items.
I wonder if you use the built-in Freight-in item code but with negative numbers would that work?
No, doesn’t work - so back to Tut’s method outlined above
That doesn’t work. Negative freight-in numbers are ignored in average costs.