How to apply a discount in MYOB

Decide when the discount applies. MYOB lets you apply one at either point: when you create the invoice, or when you record the customer's payment, which is where its pay-on-time example fits. Its other examples include wholesale rates, rates for valued customers and discounts tied to a sales drive, and what you discount is up to you.

On the invoice there are two ways to do it. A Discount (%) works on any line for items or services, but it needs the Services and Items layout, and a service line needs figures in No of units and Unit price before the percentage has anything to work on. A separate discount line takes the discount as a dollar figure instead: use the Services layout if you only sell services, or Services and Items if you sell inventory items. Give the line a description, enter the discount as a negative amount, and allocate it to the category you use for discounts given.

Whichever way you choose, MYOB records each discount against a linked category, so that has to be set first. Which category to use is a choice for your business; if you don't have one or aren't sure, check with your accountant.

1. Go to the Accounting menu and choose Manage linked categories, then click the Sales tab.
2. Select I give discounts for early payment.
3. Choose the category you use to track discounts given, or create a new one, and click Save.
4. Start the customer's invoice from Invoice on the Create menu, or click Create invoice on the Invoices page of the Sales menu.
5. Click Field layout and choose Services and Items.
6. Add each line as normal. For a service, fill in No of units and Unit price.
7. In the Discount (%) column, enter the percentage for each line that gets the discount. MYOB works out the line's Amount.
8. Check the totals at the bottom of the invoice, then save or send it as you usually would.

Each discount you apply is tracked in the category you linked, so the amounts given are kept together in one place. On the invoice, a percentage discount lowers the line's Amount and the totals, and a separate negative line lowers the total by that figure.

The customer sees a Discount column on the PDF invoice only when at least one line has a Discount (%) entered. A discount taken at payment reduces what's left owing on that invoice to the discounted balance shown on the payment page.

The message Please specify a category for early payment discounts means the discount preference hasn't been set up. Go back to Manage linked categories and complete the first three steps. If you get an error after adding an item with a negative selling or buying price, MYOB doesn't allow those on invoices; use the Discount (%) column or a separate line with a negative figure in the Amount ($) column.

If you use AccountRight on the desktop, a customer's credit terms control their discounts. You can set default terms for all new customers or particular terms in a customer's card. On an invoice, click the Terms arrow to see or change the terms for that sale only, or type a percentage in the Disc% column, which overrides the customer's default terms and reduces what's payable on that invoice. Entering a lower price in the Total column works too: AccountRight calculates the matching Disc% for you. Any discount the terms allow is applied when a payment is recorded, and you can enter or change it at that point.