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Avalara Help Center

How can I apply a discount in Quickbooks?

Overview

You want to know how to list a line level discount in QuickBooks.

Environment

QuickBooks

Resolution​

  • List the discount line directly below the line it should apply to, QuickBooks automatically applies items identified as discounts to the line immediately above it.   
  • To apply to the whole invoice move the discount line above all taxable lines in the invoice and save
    • With the discount as the first line, it will not reduce the amount subject to tax. The discount will reduce the invoice amount AFTER tax has been added to all taxable lines and tax will be calculated on the entire taxable amount (even if the discount is marked Tax or TDS)

 

Note:  You need to identify the discount item as a discount in the items list. Depending on connector version, the tax codes: NDS and TDS are available from the drop down menu in the TAX column of the discount line (this box will typically say Tax or Non). If these options are available, select NDS to make the line non-taxable, or TDS to bill tax. If these options are not available, select the desired taxability - Tax or Non.