Using Accounts Premium how do I apply sales discount to customers? I can create an Adj note but that does not work properly in my case.

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  • Updated 3 months ago
How do I apply discounts to customer invoices without reducing the number of units sold to the customer?  I can create an Adjustment Note but that requires me to enter a number of units which subsequently reduces the number of units I have sold when that is not the case.
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Kris Brown

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Posted 3 months ago

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Graham Meredith, Accredited Partner

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Hi Kris

Go to your Items and Services which you can see on the home page.

Click on Item down the bottom and then on New.

Click on the Dropdown box and click on Discount.
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Kris Brown

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Hi Graham,  Thank you for your prompt response.  So when I create the new item for the Discount, what would the tax code be?  Also what account would it be linked to (Sales Discounts - income)?
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Graham Meredith, Accredited Partner

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Hi Kris

Assuming the sales are GST then so would the discount as it is simply a reduced sale price in practicality.

Yes I would set up an income account calles Sales Discounts and apply it to that account as it is reducing the turnover not an added expense.

Others may have a different opinion.
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Kris Brown

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Hi Graham, yes that is correct with the sales having GST, so therefore the tax code would be "GST" as well correct?.  And given that the new account is an Income type account, would I need to enter any discount as a negative number so it reduces the income?
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Graham Meredith, Accredited Partner

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Hi Kris

The fact that it is a discount item it knows that it is a reduction of the sale so no you do not need to apply a negative number but simply apply your number or percentage as per the commentary when you select Discount in Items and Services.