Discount
A discount is a reduction from the normal or agreed price of a line item or invoice total. It may be a percentage or fixed amount and can reflect a promotion, negotiated price, volume purchase or early-payment arrangement. The invoice should show the discount clearly enough that the customer can understand the calculation and resulting taxable amount.
Why this matters when you invoice
A visible discount explains why the amount due differs from the standard price and helps both parties check the subtotal, tax and final total.
Where it appears on an invoice
Identify whether the discount applies to one line or the whole invoice. Show the original basis, percentage or fixed reduction, and the resulting amount before calculating later totals.
Discount example
A service is priced at €1,000 with a 10% agreed discount. The invoice shows the €1,000 basis, a €100 discount and a €900 amount before applicable tax.
Common mistakes
- Applying the discount twice.
- Hiding the original amount or calculation basis.
- Calculating tax in an order that conflicts with applicable rules.
Put it into practice
Use the matching InvoiceCraftly resource to apply this concept, then review the result in the context of your invoice and agreement.
This page explains common invoicing usage. Your agreement and applicable local rules determine what applies to a transaction.
Frequently asked questions
Should a discount appear before or after tax?
The correct calculation depends on the type of discount and applicable tax rules. Use the treatment that applies to the transaction.
Can a discount apply to one line only?
Yes. Label the affected line clearly so it is not mistaken for an invoice-wide reduction.