Discount

Invoice Components

A reduction in the price charged for goods or services.

Detailed Explanation

A discount is a price reduction offered for various reasons: bulk purchases, early payment, promotional offers, or customer loyalty. Discounts can be expressed as a percentage (10% off) or fixed amount ($50 off). Early payment discounts (like 2/10 Net 30) encourage prompt payment. Discounts should be clearly itemized on invoices showing both the original price and discounted amount for transparency and accurate accounting.

Examples

  • 2% discount for payment within 10 days
  • Volume discount of 15% for orders over 100 units

Related Terms

Subtotal Total Amount Due Payment Terms

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