The discount item in QB takes on the tax basis of everything above it on the invoice. So if you want the discount to be fully taxable, you need to organize the items on the invoice with the discount listed immediately under all your taxable items.
If a non-taxable item is above the discount, it calculates the percentage of the total of the items above it that are taxable and uses that percentage to calculate how much of the discount is taxable.

In iPoint, we take care of that calculation for you and push it to QB as a line item with all the math included.

For this reason, you’ll discover that the Item Inventory Type does not include a discount item as QB does.

Last modified: 3 Oct 2023

Was this helpful?

Yes No
You indicated this topic was not helpful to you ...
Could you please leave a comment telling us why? Thank you!
Thanks for your feedback.