Should an invoice show the discount as a line or just the reduced price?
The total is identical either way, because the tool takes the discount off before working out tax. The difference is what the client reads: a visible discount line records the original price and the agreed saving, while a lower unit price hides it. Show the discount when it is a promotion or a one-off; write the reduced price when it is simply your normal price for that client.
Side by side, in numbers
A month of social media management at 2,000 SAR, 10% off for a new client, with 15 entered as the tax rate. We ran it both ways in the Basic invoice generator:
Method one: a line at 2,000.00 with a 10% percentage discount
Subtotal 2,000.00, Discount (10%) -200.00, After discount 1,800.00
Tax (15%) 270.00, Total 2,070.00 SAR
Method two: a line at 1,800.00 with no discount
Subtotal 1,800.00, Tax (15%) 270.00, Total 2,070.00 SAR
Tax is 270.00 both times because it is worked out on the amount after discount, and both totals are 2,070.00. But the first invoice carries extra rows that tell the whole story.
When to show the discount
- When it is a limited offer, such as a first-month deal or a National Day promotion, and you want the client to know the normal price is higher.
- When it matches a discount on the quote, so the invoice lines up with what the client approved.
- When the client's purchasing team needs to show their management that they negotiated a better price.
When to write the reduced price
- When the lower price is your standing rate for that client under a longer agreement.
- When the discount differs from line to line: the tool applies one discount to the whole subtotal, not per line, so it is simpler to enter each line at its discounted price.
In that second case, work out each discounted price first with the Discount calculator, then enter it on the invoice. You can add 'price after 15% discount' to the line description if you want to keep a trace.
Percentage or fixed amount?
The discount type has three options: no discount, percentage or fixed amount. A percentage prints with its figure, such as 'Discount (10%)', which is clearer for the client. A fixed amount suits a deal like '200 riyals off the first order'. Either way the tool rejects a discount larger than the subtotal, and a percentage above 100.