Learn how you can add discounts to invoices, quotes, purchase orders, contacts and inventory items in Xero.

Sales invoices

Give a customer discount by adding a percentage discount to an invoice line.


Add a percentage discount to a quote line if you have a discount agreement with your customer.

Purchase orders

Add a percentage discount to a purchase order line if you have a discount agreement with your supplier.


Add a percentage sales discount to a contact's details, or import multiple contacts with discounts into Xero. Each time you enter an invoice for your contact, Xero applies the discount you saved in their contact details. (You can override the discount on each invoice line.) Xero doesn't apply the discount to quotes or purchase orders.


Reports showing discount percentages

Reports showing discounts in totals

Bills and supplier credit notes

You can't enter a discount percentage directly on a bill or supplier credit note (like you can with sales invoices and purchase orders). However, there are some ways you can record a discount:

  • Add a new line item with a negative unit price to represent the discount. Then, create an expense account in your chart of accounts, name it 'Discounts', and code any discounts to it.

  • Use the description field to describe the discount, and quantity field to reduce the unit price. For example, if you receive a 10% discount, enter the description as 'Goods (including 10% discount)' and quantity as 0.90.

  • Add an account to your chart of accounts

Inventory items

Although you can't add a discount percentage directly on an inventory item, you can add the same inventory item more than once, using different unit prices to define the discounted rates. Use the item code to quickly identify the different discounts for the same item. Include the discount in the description so your customer sees the discount.

Add an untracked inventory item

Add a tracked inventory item