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
There are two option on where to add the discount, on the invoice total or on the product.
Discount on the invoice total:
When adding the discount on the invoice total, you can select if you want to add the discount in £ (or any other currency) or in %.
If you add the discount before tax, the software calculates the subtotal excluding VAT and reduces the discount from that amount. After that, the VAT % is calculated from the discounted amount and added on top of it.
If you add the discount to the amount including tax, the software first calculates the total including VAT out of all invoice lines and then deducts the discount.
Discount on products/services:
You can also decide to add the a discount on your products/services.
When selecting the discount on the invoice line excluding VAT, the software first deducts the discount from your product's price before tax, sums up the prices and after that, calculates the VAT for that amount and sums it up to the invoice total.
When selecting the discount on the invoice line including VAT, the software calculates the product price + VAT - discount = Total invoice line (example: £100 + 19%VAT(£19) - £20 = £99).