How do I enter a discount on an invoice in Sage Accounting

You can record discounts given/received against sale and purchase invoices at different levels: 

• Item discount 
• Overall discount
• Discount applied after invoicing
• Invoice Display
• Ledger visibility and customization

Item discount (not applicable for Start users)

NB: the discount amount will only appear on PDF of invoices if the selected template is appropriate for products and not for services.

Overall discount

You may want to apply an overall discount to all your items before you validate your invoice: Currently, there is no automatic option allowing you to apply a global discount on your items all at once, however:

• For sales invoices:
  • You can add a discount to each one of your items and the total discount will be calculated automatically and added at the bottom of the invoice.
  • You can manually add a transaction line for a global discount only and not apply any discount at item lines.
    • You can in that case leave the Net amount field as zero.
    • You can calculate manually and enter the overall discount you want to apply in the discount field.
    • You can add a description such as - 10% discount
    • You can leave the Ledger Account field with the default ledger for the discount transaction line. Automatically the software will correctly assign the discount amount.

• For purchase invoices:
  Since there is no discount field, you can manually enter the following on an additional line:
  • In the >Description field, mention that it corresponds to a discount
  • In >Ledger account field, use the relevant ledger account associated with discounts
  • In the >Quantity field leave 1 and in the >Price field, insert the amount of the discount in negative., for example, -10.

• For Start users:
  • You can manually add a transaction line for a global discount
  • Record for example "Discount" within the >Description field
  • Select the relevant ledger account for discounts in the >Ledger account field
  • In the >Price field, record the discount with a negative sign in front of it, for example, -10 
  • In the >Tax field, select No Tax

Discount applied after invoicing

You can record a discount given to you by a supplier or a discount to your customers when recording the payment.

1. Sales/Expenses > Sales/Vendor Bills
2. Click into the relevant unpaid invoice> Record Payment
3. Enter in the amount of the discount you have been given in the discount field
4. Enter the relevant Amount Paid / Received
5. Click Save

Displaying the discount

The details of the discount field for each item will show on your invoice only if you select the "Product" template from your Settings > Templates and Logos.
What details can be displayed on the invoice - Accounting. Whether you offer services or products, you can select either template.
 

Ledger visibility and customization
 

• Visibility
  You can view the details of the entries and ledgers used under Reports > Audit trail > detailed view. 
• Customize
  When you use the "Discount field", the entry will automatically be recorded under the default ledger as set up under Settings > Default Settings.
  You can change this default ledger according to your needs.