Definition
A discount on an invoice is a reduction in price, shown either as a percentage or a fixed amount, applied to a line item or to the subtotal. Discounts are used for promotions, volume pricing, loyalty, early payment, or goodwill. The invoice should show the original price, the discount, and the net amount.
Discount in practice
Always show discounts explicitly rather than silently lowering prices. The client sees the value they received, and your records show the real list price for future work.
Decide whether a discount applies before or after tax. In most places tax is charged on the discounted price.
Frequently Asked Questions
Should I show a discount as a negative line item?
Either a negative line or a dedicated discount field below the subtotal works. A dedicated field is clearer and keeps your line items limited to actual deliverables.