Hi there, @kqbrosis.foods,
Discount items are not reported as an expense. However, it is reported as a reduction in gross sales. The Profit and Loss report represents the profitability of a business. Thus, it shows your total income and expense.
Depending on how you set up the discount item, the discount item should be included in your Profit and Loss Report. Usually, it is displayed right below the Other Income section.
You can create a discount item and apply it to the transactions. Here's how:
- Go to the Gear icon.
- Select Products and Services.
- At the top right, select New.
- Choose Service for Products/Services type, then complete the information needed.
- In the Name field, enter Discount. If you plan to create multiple discount percentages, you can enter the percentage and Discount for the name (Example: 10% Discount).
- In the Sales price/rate field, enter the discount amount as a negative. (You can manually calculate the discount amount based on the percentage promo)
- From the Income account drop-down, select Discounts given account.
- In the Sales tax category section, it depends on your state if sales tax is calculated after discounts are applied then mark the discount line taxable.
5.Click Save and close.
You can check this article about applying a discount on an invoice or sales receipt.
You can always leave your comments below if you have other questions. I'm always here to help.
