ⓘ This article is for small businesses who use Xero
- Add a discount directly to an invoice, quote or purchase order, or as a default to a contact.
- Record a discount on a bill, credit note or inventory item.
What you need to know
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Add a default discount for a contact or multiple contacts. Xero applies the default discount to each line item on invoices and quotes you create or edit for that contact. Default discounts don't apply to purchase orders.
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You can override the default discount on each transaction line if needed.
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Default discounts apply as percentages.
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You can't enter a discount percentage directly on a supplier bill or credit note, but you can record it in other ways.
Add a discount to a sales invoice
| New invoicing | Classic invoicing |
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Enter discounts on an invoice as a percentage of a line item, or a full amount.
The line item total and transaction total will update to include the discount when you click out of the Disc field. A total discount value for the transaction will also show above the transaction total. |
Enter discounts on an invoice or purchase order as a percentage of the line item.
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Add a discount to a quote
Enter discounts on a quote as a percentage or a full amount.
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In the Business menu, select Quotes.
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Select an existing transaction or to create one, click New Quote.
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Enter the details in the relevant fields.
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If your transaction table doesn't have the Disc column, click Show/hide fields, select the Discount checkbox, then click Save.
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In the Disc column, enter your discount as a full amount or as a percentage. If it's a percentage, add % after the discount value.
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Save or send the transaction, or submit it for approval.
The line item total and transaction total will update to include the discount when you click out of the Disc field. A total discount value for the transaction will also show above the transaction total.
Add a discount to a purchase order
Enter discounts on an invoice or purchase order as a percentage of the line item.
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In the Business menu, select Purchase orders.
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Select an existing transaction or to create one, click New Purchase Order.
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Enter the details in the relevant fields.
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In the Disc % column, enter the discount percentage.
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Save or send the transaction, or submit it for approval.
Apply a discount to a purchase bill or credit note
To apply a discount to a supplier bill or credit note, you can:
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Add a negative unit price to a new line item on the bill or credit note. You can create an expense account in your chart of accounts called Discounts to code the discounts to.
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Use the Description field to describe the discount, and the Qty field to reduce the unit price. For example, if you receive a 10% discount, you can enter the description as 'Goods (including 10% discount)' and quantity as 0.90.