A Discount can be offered on any Invoice that has not been fully reversed (ie. that has not been cancelled and/or discounted). You can apply multiple discounts on an Invoice as long it has not been fully reversed.
The Discount button is visible only upon clicking an Invoice. The Discount button will not be visible for an Invoice which has already been fully reversed due to either a previous Discount or Bad Debts or Sales Reversal. This implies that
Maximum Discount possible = Invoice Amount - Reversals
Here, Reversals could be either due to Bad Debts or Discounts or Sales Reversals. Of course, since a Bad Debt Reversal and a Sales Reversal fully balances an Invoice, the question of applying any further Discount does not arise.
Example 1
Suppose you have already executed the registration request of a domain name of your Customer X and have a Pending Invoice -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 100 (INR 5000)
Conversion Rate: 50
Then you decide to give a discount of USD 10 to X on the USD 100 Invoice -
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 10 (INR 500)
Conversion Rate: 50
The system would now balance this Credit Note against the Invoice resulting in the below status -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 90 (INR 4500)
Conversion Rate: 50
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Now after receiving the Discount, X pays for the Pending Invoice of USD 90 -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 3
Receipt Description: Payment received for domain registration (Transaction ID 1)
Receipt Amount: USD 90 (INR 4500)
Receipt Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
In this example, your Customer paid for an Invoice after you gave him a Discount.
Example 2
Say your Customer Y needs to pay for a USD 100 Invoice -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 100 (INR 5000)
Conversion Rate: 50
Now your Customer Y chooses to pay you the entire amount. This changes the status of the transaction to -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 2
Receipt Description: Payment received for Transaction ID 1
Receipt Amount: USD 100 (INR 5000)
Receipt Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Pleased with the loyalty of this Customer, you choose to give him a 10% discount -
Transaction ID: 3
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 10 (INR 500)
Conversion Rate: 50
The above Credit Note may now be utilised by your Customer towards any other purchases.
Example 3
Suppose your Customer Z needs to pay for pay for a USD 100 Invoice -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 100 (INR 5000)
Conversion Rate: 50
On this Invoice amount, you choose to offer him a Discount of 10% -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 90 (INR 4500)
Conversion Rate: 50
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Then your Customer Z refuses to pay you the remaining amount, so you decide to Cancel the Pending Invoice amount as Bad Debts -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 3
Credit Note Description: Bad Debts Credit on Transaction ID 1
Credit Note Amount: USD 90 (INR 4500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Example 4
Suppose your Customer L and has a Pending Invoice of USD 100 -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 100 (INR 5000)
Conversion Rate: 50
Then you decide to give a discount of USD 10 to L -
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 10 (INR 500)
Conversion Rate: 50
The system would now balance this Credit Note against the Invoice resulting in the below status -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 90 (INR 4500)
Conversion Rate: 50
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Now after receiving the Discount, L pays for the Pending Invoice of USD 90 -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 3
Receipt Description: Payment received for domain registration (Transaction ID 1)
Receipt Amount: USD 90 (INR 4500)
Receipt Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Now you decide to give a further USD 25 discount to L -
Transaction ID: 1
Invoice Amount: USD 100 (INR 5000)
Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 2
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 10 (INR 500)
Credit Note Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 3
Receipt Description: Payment received for domain registration (Transaction ID 1)
Receipt Amount: USD 90 (INR 4500)
Receipt Pending Amount: USD 0 (INR 0)
Conversion Rate: 50
Transaction ID: 4
Credit Note Description: Discount Credit on Transaction ID 1
Credit Note Amount: USD 25 (INR 1250)
Credit Note Pending Amount: USD 25 (INR 1250)
Conversion Rate: 50
A Discount is always provided on the Invoice Amount and not on the amount after any Taxes.
For example, if the Invoice amount is USD 10 and the applicable Tax is 10%, then the total Invoice amount would be displayed as USD 11 (10 + 1 tax). If you wish to give a USD 5 discount on this Invoice, you need to specify the Discount amount as USD 5 itself. When the Discount Credit Note is raised, the total amount would appear as USD 5. The tax amount will not be reversed.