How to show discounts on an invoice
Reproduce percentage discounts, shipping, tax and rounding in the invoice editor with explicit calculations and downloadable examples.
A percentage discount needs a stated base. Docuivo applies the discount to the item subtotal, adds shipping, then applies the entered tax rate to that adjusted amount. Check that this order is appropriate for your transaction before using the result.
Reproduce the 10% discount in the editor
Enter 12 storage boxes at USD 8 each, Discount 10, Shipping 0 and Tax 0. The item subtotal is USD 96.00. Ten percent of USD 96.00 is USD 9.60, so the total is USD 86.40. The PDF states both the subtotal and discount instead of hiding the reduction inside a changed unit price.
If you change the quantity to 10, the subtotal becomes USD 80.00, the discount USD 8.00 and the total USD 72.00. This is an easy check that a percentage discount follows the base amount.
Understand the order of adjustments
For a second arithmetic exercise, keep the USD 96 subtotal and 10% discount, enter shipping of USD 5 and an illustrative tax rate of 20%. The adjusted base becomes USD 91.40, tax USD 18.28 and total USD 109.68. The 20% rate is a made-up test input, not a recommendation for a country or product.
- Shipping is added after the item discount.
- The entered tax rate is applied to the adjusted base including shipping.
- A payment received changes the balance, not the subtotal or discount.
- If your required treatment differs, do not force the result to fit by choosing an unrelated percentage.
| Step | Calculation | Result |
|---|---|---|
| Item subtotal | 12 × 8 | 96.00 |
| Discount | 96.00 × 0.10 | 9.60 |
| Adjusted base | 96.00 − 9.60 + 5.00 | 91.40 |
| Illustrative tax | 91.40 × 0.20 | 18.28 |
| Total | 91.40 + 18.28 | 109.68 |
Keep rounding consistent
The editor rounds line totals to two decimal places, adds them, and rounds the discount and tax to two decimal places. The displayed subtotal is therefore based on the displayed line amounts. For example, three separate lines of USD 0.335 round to USD 0.34 each and add to USD 1.02; one line for quantity 3 at USD 0.335 rounds to USD 1.01.
That one-cent difference comes from where rounding occurs. Keep the agreed line structure, inspect the PDF and use the rounding rules required for your records. Avoid copying a total calculated with a different rounding method into the same document.
Distinguish a discount from a payment
In PO-1042 the agreed discount reduces the charge from USD 96.00 to USD 86.40. The USD 30 deposit does not create another discount: total remains USD 86.40 and balance becomes USD 56.40. Record the deposit in Payment already received and keep its receipt linked to the invoice.
This guide provides general educational information and is not legal, accounting, tax or financial advice. Requirements vary by country, industry and transaction. See how Docuivo tests its tools and calculations.