Discount on invoices

With Zervant you can easily add a discount on invoices for your customers. The following article describes how you can set up your discounts and how discounts are calculated.

 

How to add a discount

1. Go to the tab >Invoices and create a >New invoice

2. Check the box >Discount on the right panel under the invoicing >Settings

3. Click on the downward pointing triangle to customise your discount settings for your invoice:

  • Discount based on: decide whether the discount is calculated for the whole invoice or a certain product/service
  • Discount type: offer your discount as percentage (%) or specific amount
  • Discount calculation: select whether the discount is incl. or excl. VAT

Setting up discounts on invoices with Zervant

 

Discount calculations

The following example values are used to explain the calculations for our discounts:

VAT = 20% (0,2)
Discount percentage = 10% / Total Discount = 20€
Unit Price = 100€
Quantity = 1

 

How is the discount calculated for:

TOTAL DISCOUNT AMOUNT, incl. VAT?

(Unit Price * Quantity) * (1 + VAT) – Total Discount
(100 * 1) * (1 + 0,2) – 20 = 100

 

DISCOUNT PERCENTAGE, incl. VAT?

(Unit Price * Quantity) * (1 + VAT) * (1 – (Discount Percentage/100))
(100 * 1) * (1 + 0,2) * (1 – (10/100)) = 108

 

TOTAL DISCOUNT AMOUNT, excl. VAT?

((Unit Price * Quantity) – Total Discount) * (1 + VAT)
((100 * 1) – 20) * (1 + 0,2) = 96

 

DISCOUNT PERCENTAGE, excl. VAT?

(Unit Price * Quantity) * (1 – (Discount Percentage/100)) * (1 + VAT)
(100 * 1) * (1 – (10 / 100)) * (1 + 0,2) = 108

 

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