#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.
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.
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 as well as taxes are also re-calculated as per Discount Amount.
