US: How to set up tax and discount(in-line / overall) while creating an invoice in QBO?

How to set up tax and discount(in-line / overall) while creating an invoice in QBO?


Good day, harip,

I'm happy to walk you through setting up the tax and discounts.

Let’s start with setting up sales tax. Here’s how:

  1. Click Taxes on the left pane.
  2. Click Set up sales tax.
  3. You need to verify your address, if it’s correct, select Looks good. If not, hit the pencil icon then correct it. Note: We base the tax calculation on this address.
  4. Select No or Yes.
  5. If you're only required to collect tax in your home state, we'll ask you to give us a little more information:+
    1. When did your current tax period start?
    2. How often do you have to file your sales tax returns?
    3. When did you start collection tax for this agency?
  6. If you need to collect taxes in multiple states, select Add Agency to set up all other agencies you are registered with.
  7. Select Got it and you'll be taken to the sales tax page.
NOTE: When Auto Sales Tax is enabled, you'll see a Permit no. field on your checks and other expense transactions.

For more information, please check the Set up and use Automated Sales Tax article.

Next, create the discount item:
  1. Click the Gear icon at the top,
  2. Under Lists, select Products and Services.
  3. At the top right, select New.
  4. Select Non-inventory or Service for Products/Services type, then complete the information needed.
    1. In the Name field, enter Discount. If you plan to create multiple discount percentages, you can enter Discount and amount for the name (Example: $2 Discount).
    2. In the Sales price/rate field, enter the discount amount as a negative.
    3. From the Income account drop-down, select Discounts given account.
    4. Make sure the Is Taxable is not checked.
  5. Select Save and close.

Check this article for more information: Discount as line item on invoices and sales receipts.

Let me know if there's anything else I can help you with.

Was this answer helpful? Yes No
IntuitMaryL , Community Support Specialist
Employee SuperUser

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.