Pricing, discounts and VAT

Discounts

Every line has its own discount %; in addition, the document discount % field applies a further percentage to every line, after the line discount and before tax.

1. Line discount: set it on the line (0–100%). The line total is quantity × unit price, minus the line discount.
2. Document discount: set it in the form's totals area (0–100%) — it applies to each line's already-discounted amount.
3. Tax is then calculated on the discounted amount (exclusive mode) or carved out of it (inclusive mode), so a discount never changes the tax rate, only the base it applies to.
4. The summary and the PDF show one combined Discount line; shipping cost is added after discounts and tax.
5. A customer's own default discount % does not fill in the document field automatically — it is a starting point you still choose to apply.
6. Conversions (quote → order → invoice) and clones copy the document discount unchanged; a credit note keeps the same percentage and negates the quantities instead.

Tax-exclusive vs inclusive, and the VAT recap

Each line carries its own tax rate, taken from the product's tax type or typed in by hand; the document's price mode decides whether unit prices are Exclusive (net, tax added on top) or Inclusive (gross, tax carved out of the price shown).

1. Maintain your rates in Settings → Tax types: name, code, rate %, an optional compound rate, validity dates, and a default. Assign a tax type to each product, and a default per customer.
2. On a line, the tax rate is pre-filled from the picked product (or the document/installation default on the first line) — lines added by hand start at 0% until a product is picked or a rate typed in, so it is worth checking.
3. In Exclusive mode: subtotal = the sum of net line amounts, tax is added, total = net + tax + shipping. In Inclusive mode: the unit price already contains tax, so the subtotal is derived by dividing out the rate.
4. Rounding happens per line, so the totals always match the printed lines exactly.
5. The PDF's totals block prints subtotal, discount, tax, total, paid and amount due, followed by a VAT recap table — the base and the tax, per rate.

Related: Create a quote, Add a product, Reference data settings.