# Applying a Discount

### 1. Discount on Price List Rate of an item[ ](https://docs.erpnext.com/docs/v13/user/manual/en/selling/articles/applying-discount#1-discount-on-price-list-rate-of-an-item) <a href="#id-1-discount-on-price-list-rate-of-an-item" id="id-1-discount-on-price-list-rate-of-an-item"></a>

You can find the Discount field in the Item table of a transaction, click on the downward arrow at the righ-hand side of a row. A Discount can be applied as a percentage or a fixed amount related to the Price List Rate of the Item.

![Discount on Price List Rate](https://docs.erpnext.com/files/discount-on-price-list-rate.png)

The feature of Discount (%) is available in all sales and purchase transactions.

If you want to apply a discount (as a Percentage) regularly for certain quantities you'd rather use a "Pricing Rule". Read [Pricing Rule](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/pricing-rule) documentation to learn more.

### 2. Discount on Net Total or Grand Total[ ](https://docs.erpnext.com/docs/v13/user/manual/en/selling/articles/applying-discount#2-discount-on-net-total-or-grand-total) <a href="#id-2-discount-on-net-total-or-grand-total" id="id-2-discount-on-net-total-or-grand-total"></a>

In the "Additional Discount" section (of a "Sales Order" or "Sales Invoice" alike), you can apply a Discount as a fixed amount or a percentage on the total sum of the Sales.

![Additional Discount](https://docs.erpnext.com/files/additional-discount.png)

#### 2.1 Discount on "Net Total"[ ](https://docs.erpnext.com/docs/v13/user/manual/en/selling/articles/applying-discount#21-discount-on-net-total) <a href="#id-21-discount-on-net-total" id="id-21-discount-on-net-total"></a>

If a Discount is applied on **Net Total**, then item's Net Rate and Net Amount is calculated as per the Discount Amount. Net Rate and Amount field will be visible only if Discount is applied using this feature.

![Discount on Net Total](https://docs.erpnext.com/files/discount-on-net-total.png)

#### 2.2 Discount on "Grand Total"[ ](https://docs.erpnext.com/docs/v13/user/manual/en/selling/articles/applying-discount#22-discount-on-grand-total) <a href="#id-22-discount-on-grand-total" id="id-22-discount-on-grand-total"></a>

If a Discount is applied based on the **Grand Total**, then with item's Net Rate, Net Amount as well as taxes are also re-calculated as per Discount Amount.

![Discount on Grand Total](https://docs.erpnext.com/files/discount-on-grand-total.png)

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