You want to know how the discount listed by Discount at the bottom of an invoice in QuickBooks Online (QBO) is applied.
- The discount is applied to the items listed in Products, but not non-taxable freight.
Only "Quantity" and "Amount" are used for calculations. "Rate" field is not considered.
Making the "Quantity" in QBO as negative (-) , QBO will automatically make "Amount" negative (-). In the Admin Console, we will add Discount with positive (+) value and positive (+) Tax amount.
Note: Do not make Rate as negative (-) otherwise QBO will make total amount positive (+).