How to apply a discount in QuickBooks

Switch discounts on before you need them. Go to Settings and select Account and settings, then open the Sales tab. In the Sales form content section, select the edit icon, turn on Discount, and select Save. Take care if you later turn discounts off while you're in the middle of an invoice: Intuit says that also turns them off in your account settings.

Then decide which kind of discount fits. A subtotal discount reduces the whole transaction, either by a flat amount or by a percentage. A line item discount is a fixed amount set up as its own product or service, which suits a set discount you offer again and again, such as a seasonal one.

Discounts can go on three kinds of sales form: invoices, quotes and sales receipts.

1. Select + New or + Create.
2. Choose Invoice, Quote or Sales receipt.
3. Fill out the form. On an invoice, choose the customer from the Add Customer dropdown, then pick a product or service for each line and enter its Qty and Rate.
4. For the discount, select AUD for a flat amount or % for a percentage, then type the amount or percentage into the Discount field.
5. On a sales receipt, select Discount Value to enter a set amount, or Discount Percent to enter a percentage.
6. Select Save or Save and close.

A subtotal discount applies to the transaction as a whole, so it isn't tied to any single product or service on the form. A line item discount sits on the form as a line of its own, showing its description and negative rate among the other lines.

Saving a discounted invoice doesn't send it: Save and close keeps it for sending later. To email it straight away, select Review and send on the invoice instead, then follow the prompts. Once it has gone out, the invoice status shows Sent and the customer gets an email notification.

The Discount setting itself stays on in Account and settings, so the option is there on your next invoice, quote or sales receipt too, unless someone turns it off, including from inside an invoice.

If the form has no discount option, check that Discount is on in the Sales tab of Account and settings, particularly if anyone has turned discounts off while creating an invoice. If you're trying to give a percentage as a line item, that won't work, because line item discounts take whole amounts only; use the subtotal discount for a percentage instead.