Discounts and Tax in Quote Block :
You can add discounts and tax directly in the quote block by editing the respective menus and they will get included in the total.
To add discount, directly mention the discount price to be deducted from the total
To add sales tax, you can directly mention the sales tax to be deducted, or mention the percentage of the tax from total and it gets computed automatically.
Note: The overall discount will no longer be supported in the documents from 14th January 2022
Why is the overall discount not available?
Confusion in tax calculation:
Tax rate is applied and calculated for each line item in the quote. When you apply an overall discount system has to divide the overall discount and apply to individual line items to ensure taxes are calculated correctly. This is not clear in the document and leave room for confusion when reading the quote.
Example - Let us say the price of Product A is 100 after applying a tax rate of 10% and the price of Product B is 200 after applying a tax rate of 14%. The overall price is 300 and when there is a discount of 50, the overall price will reduce from 300 to 250. In this case, we do not know the price of the individual product after applying the discount and we have to backtrack the calculation. The discount of 50 can be divided into 17 for product A and 33 for product B.
Syncing quotes with other PSAs and Accounting systems
Almost all the PSAs and accounting systems we sync with do not support an overall discount. We do a similar calculation, dividing the overall discount to individual line items and then pushing the line items to other systems. This again causes confusion as the prices on individual line items do not match between the systems.
To avoid unnecessary calculations and confusion, we are removing the ability to add discounts on a quote level. Users will be able to apply discounts on individual line items only.
What should I use instead of the overall discount?
We suggest adding the discount on the individual product in the quote block instead of using overall discount.
However, another viable workaround to check the overall discount on the final total is to create a product titled 'Discount' and set the quantity to '-1'. Follow the given steps to set it up:
1. Click on the 'Add' button in the quote block.
2. Click on 'Create Product'.
3. Add the name of the product as 'Discount'.
4. Add the 'Type' as Hardware.
5. Set the 'Cost Price' as 0.
6. Set the 'Sell Price' as the overall discount applied to the final amount.
7. Set the 'Quantity' as -1. Click on Save.
The 'Discount' product will now show the total discount applied in the overall final of a quote.
What will happen to documents that already have the overall discount?
The overall discount will not be displayed in the quote block for newly created documents i.e., the documents created after 14th January 2022
All the old documents which are WON/LOST/Expired will keep the overall discount as is for record-keeping
All the documents that are Sent/Draft and have an overall discount will have it as is.
If a document is cloned or created from a template that has an overall discount, it will be removed.