applying discount

Tip of the week: Applying Discounts

Giving discounts to clients is a reality of business, but many of our clients manage the process in a variety of ways. This week’s tip focuses on the best way to apply discounts in WorkflowMax.

Why give discounts?

There are many reasons businesses offer discounts. Some of the reasons include:

  • Encouraging the client to pay on or before the due date

  • Incentivising the client to offer more work in the future

  • Avoiding a dispute if issues have occurred during the project

  • Rewarding high value customers

  • To close a sales gap

Applying discounts in WorkflowMax

While there may be a few different ways to apply a discount in WorkflowMax, the best method is to discount using a negative cost. This will allow you as the user to reduce the amount invoiced to the client and allow for clear visibility on the discount internally and/or externally depending on your preferences. A discount can be applied as a lump sum or a percentage amount as you create an invoice.

You can apply a discount only while you are creating an invoice.

To apply a discount to an invoice:

  1. On the Invoice Information screen, select New Cost.

     

  2. On the New Invoice Cost screen, provide the following information, as required.

Field

Description

Description

For a discount, use the description to provide details of the reason for the discount. For example: Prompt payment discount.

Quantity

To apply a discount, this value is a negative quantity, which is used to multiply the value in the Unit Price field.

Highlight the Quantity field, then do one of the following:

    • For a lump-sum discount, type -1.

    • For a percentage discount, type the discount you require, divided by 100. For example, for a 10% discount, type: -0.1.

Unit Cost

This cost is not used when applying a discount, so the value can be zero.

Unit Price

The amount shown in this field (multiplied by the Quantity value) will be subtracted from the other costs in the invoice. This is the pre-tax amount, so do not include tax in this price. WorkflowMax will calculate the correct tax amount, based on the value you select in the Tax drop-down list.

Code

This reference code is not required for a discount. Leave the Code field blank.

Billable

Make sure the Billable checkbox is selected so that the discount will be applied to the other costs in the invoice.

Tax

The tax name and rate to apply to the discount. Select the same rate that was applied to the original invoice.

Notes

Any comments or notes relating to the discount.

 

3. Save your changes.

If you have any trouble applying a discount to your invoices reach out to support.xero.com and our team will assist.

Do you have any other tips you would like to share?

Let me know in the comments below and it could feature as a future tip of the week.

WorkflowMax Live Q and A session
Andrew Solley
Andrew Solley is the Marketing Coordinator for WorkflowMax. Having worked as an Account Manager for WorkflowMax previously, he has a good understanding of the product and our customers. Growing up with several family members running their own project based businesses, it was only natural for Andrew to be involved in Project Management.

Andrew Solley

Related Articles