FAQ: Discounts & Taxes on Bills
Common questions about applying discounts and taxes to purchases.
Can I apply both a line discount and a document discount on the same bill?
Yes. You can use both types on the same bill. Line discounts reduce individual items, and a document discount applies to the final subtotal. Enter line discounts first, then the document discount, so the order is clear.
What is the difference between a percentage discount and a fixed-amount discount?
A percentage discount is calculated as a portion of the subtotal (e.g., 10% off). A fixed-amount discount is a flat reduction regardless of the order size (e.g., 500 AFN off). Choose the one your vendor quoted.
Do I need to match the tax on the vendor's bill exactly?
Yes, whenever possible. If your bill shows 1,500 AFN and the vendor's bill shows 1,600 AFN, do not assume the difference is tax—ask the vendor. Mismatched bills create accounting errors and disputes.
Can I change a discount or tax after I save the bill?
Yes. Open the bill again, edit the discount or tax field, and save. The bill total will recalculate. If the bill is already paid, check with your accountant before making changes.
If a bill is tax-inclusive, should I add tax again in the system?
No. If the vendor quoted "1,500 AFN tax-included," the total 1,500 AFN is already the final price. Do not add additional tax. If you are unsure, ask the vendor to clarify.
How does a discount affect the accounting?
Line and document discounts reduce the purchase amount recorded in your accounts. The system records the discounted price, not the original price, so your inventory and expense accounts reflect what you actually paid.
Can I save a custom discount as a template?
This depends on your system setup. If your administrator has enabled discount templates, you may be able to create one. Ask your administrator for details on how to set up templates for frequently-used discounts.
What if the vendor's tax rate is not in my system?
Ask your administrator to add the tax rate. Common rates vary by region and product type. Once added, you will see it in the tax selector and can use it on future bills.
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