brotherton-erpnext/erpnext/docs/user/manual/en/selling/articles/applying-discount.md

#Applying Discount

There are several ways Discount can be applied on an item in the sales transactions.

#### 1. Discount on "Price List Rate" of an item

You can find the Discount (%) field in the Item table. Discount (%) is applied on the Price List Rate to get the selling Rate of the Item.

<img alt="Discount Percentage" class="screenshot" src="{{docs_base_url}}/assets/image/articles/discount-1.png">

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

You can use Pricing Rule to automatically apply Discount (%). [Click here to learn how Pricing Rule functions.]({{docs_base_url}}/user/manual/en/accounts/pricing-rule.html)

#### 2. Discount on Net Total and Grand Total

In the "Additional Discount" section, you can apply flat discount, as amount or as percentage.

<img alt="Discount Percentage" class="screenshot" src="{{docs_base_url}}/assets/image/articles/discount-2.png">

If Discount Amount is applied based on the **Net Total**, then item's Net Rate and Net Amount is reduced as per the Discount Amount.

<img alt="Discount Percentage" class="screenshot" src="{{docs_base_url}}/assets/image/articles/discount-on-net-total.png">

If Discount Amount 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.

<img alt="Discount Percentage" class="screenshot" src="{{docs_base_url}}/assets/image/articles/discount-on-grand-total.png">

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