#Applying Discount
There are several ways Discount can be applied on an items in the sales transactions.
#### 1. Discount on "Price List Rate" of an item
In the Item table, after Price List Rate field, you will find Discount (%) field. Discount Rate applied will be applicable on the Price List Rate of an item.
The feature of % Discount is available in all the sales and purchase transactions.
You can also %Discount applied based on **Pricing Rule** as well. [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
From the "Additional Discount" section, you can apply flat discount, as amount or as percentage.
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.
If Discount Amount is applied based on the **Grand Total**, then with item's Net Rate, Net Amount and taxes are also re-calculated as per Discount Amount.