How to Apply Discounts
Follow the steps below to apply discounts to invoices or estimates:
Open a job or estimate to view the details page.
Click Add discount under Subtotal in the Line items section.
📌 Note: Discounts can only be added when the job or estimate total is greater than zero. The Add discount option will not appear if the job/estimate total reflects an amount of $0.00.
Select whether you'd like to apply the discount as a percentage or dollar amount.
Use the Description field to include a brief note indicating the discount reason (Seasonal Promo, Military Discount, Loyalty Discount, etc.). Keep in mind, customers will see the description on their invoice.
Multiple Dollar amount discounts can be added by clicking Add discount after you've added the first Dollar amount discount.
📌 Note:
Only one type of discount may be applied at a time.
Choosing Percentage will remove any dollar amount discounts previously applied.
Click Save to update your changes - and that's it!
How Discounts Affect Tax
When you apply a discount to a job that includes both taxable and non-taxable items, tax is calculated on the taxable amount after discounts are properly allocated, not on the original taxable amount. We apply the percentage discounts directly to taxable items, and we proportionally allocate fixed discounts.
We calculate two totals:
Taxable items total (only items marked as taxable)
All items total
Why we do this:
Ensures discounts are fairly split between taxable and non-taxable items
Complies with tax regulations that require tax on net amounts after discounts
Prevents mathematical errors when mixing different item types
Example:
If your invoice includes $200 in taxable items and $100 in non-taxable items ($300 total) with a $30 discount:
Invoice total: $300 = $200 taxable + $100 non-taxable
Discount applied: $30
Taxable portion of discount: $20 = ($200 ÷ $300) x $30
Taxable amount: $180 = $200 - $20
Need help or have questions?
We're here for you! Chat with Support using the Blue Chat Bubble in your Housecall Pro account, or give us a call at (858) 842-5746.