How to Use QuickBooks Line Item Discounts
We frequently receive queries from readers about the proper method for giving a discount on a specific customer's invoice in QuickBooks. Usually the reader wants to know how to discount the goods or services provided and avoid giving a discount on shipping.
Here's the rule to remember: When you enter a percentage discount item on a line, QuickBooks automatically takes the discount against the amount of the line above the discount item. If you're selling one item, enter that item and then enter the discount item. Enter the shipping charge on the line after the discount item.
If you're selling multiple items in QuickBooks and want to discount all of them, enter all the items and then enter a Subtotal item. On the next line, enter the discount item (which applies the discount to the subtotal because that's what's on the line above the discount). Then use the next line to enter the shipping charges.