You can apply percentage and flat rate discounts to proposals and invoices as needed. To apply a discount, open the line item proposal or invoice, and select the "+" button. Select "Discount" from the drop-down menu that appears.

In the pop-up window, create the discount to be applied to the client's invoice. To learn more about applying discounts and other line items to a proposal or invoice refer to the following article:

When a discount is applied, the tax total will still be reflective of the tax total generated from the various packages and add-ons listed on the invoice. The total tax due on an invoice is generated from all of the tax types applied to the packages and add-ons on that particular invoice. Packages and add-ons can have different tax rates applied, and often, invoices contain a culmination of multiple rates to create the total tax amount due.

In order to decrease the tax total due and ensure that the tax amount listed on the invoice is a reflection of the taxable amount after the discount has been applied, you need to apply a tax rate to the discount line item on the invoice. To do this, open the discount line item that you added to the invoice and apply the tax rate you wish to remove from the overall invoice amount.

For example, on the invoice in the screenshot below, the total amount due was $6,890.00 before the discount was applied, with a taxable amount of 6%, equaling $390 in tax.

When a $200 discount was applied with no tax rate identified, the tax total remained the same, but the total invoice amount decreased with the $200 discount.

In order to ensure the taxable amount is not a reflection of the total prior to the discount, the 6% tax rate was added to the discount line item.

Once the tax rate was applied to the discount, the tax amount changed from $390 to $378.

Note:

Only one tax rate can be applied to per discount. If your invoice is a culmination of multiple tax rates generated from your packages and add-ons, you will need to identify one tax rate to apply to the discount for the overall taxable amount.