An invoice is an important document that is used in business. As a business owner, you cannot provide goods and services without such a document. Therefore, you would have to know how to create an invoice.

Additionally, as you look to expand your business and retain clients, you would need to run promotions and provide a discount to your customers. You must know how to create an invoice with and without a discount, depending on the type of transaction.

 

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How to Create an Invoice without a Discount

If you want to generate an invoice without discount, you need either s specialized or generic (word processing or spreadsheet) software. Specialized software is always better than the generic software as it has more advanced options with many templates.

Use your selected software and template to create your invoice following several steps. These steps are:

  • Provide a Title for the Invoice and Invoice Number
  • Add Your Company and Buyer Information
  • Describe all Goods and Services Sold or Supplied
  • Include all Relevant Dates
  • Highlight Additional Fees, Deductions, Taxes, Advances, and Others
  • State Payment Method, Terms, and Personal Message

Since this type of invoice you generate doesn’t have any discount, all calculations under the subtotals and totals are straightforward.

How to Create Invoice Without Discount
The snapshot above is an example of an invoice without a discount.

How to Create an Invoice with a Discount

After creating an invoice without a discount, you can go ahead and modify the invoice accordingly. A discount is inserted in an invoice in two ways. The first method is to include it within the description of supplied goods or services. The second method is to include it after the subtotal.

First Method

This way is best if you have different discount rates for different goods or services. As you generate a description of all goods and services supplied, you want to input other information. Automate your template so that if you input the code of an item, it automatically populates description and unit price column. Just after the unit price column, you would want to insert another column for discounts.

Calculate the total column by subtracting the discount from the unit price multiplied by the number of items. Doing this allows you to include the discount earlier in the calculation, which is easier and less complicated. An example of this is demonstrated below where a pack of pencils and a pack of pens have $30 and $50 discounts, respectively.

How to Create Invoice With Discount

Second Method

For the second method, you would include the discounted amount after the subtotal before the total due amount. This method is suitable for a general discount on all items purchased. You would deduct the discounted amount from the total while adding other charges to generate the total due amount. The snapshot below shows an example of such a method of inclusion of discount.

How to Create Invoice with Discounts

 

Here’s the list of main invoice fields:

 

Useful resources about invoices: