Discounts and taxes on orders

Apply line and order discounts and add tax rates to a sales order.

Updated June 21, 20261 min read

You can adjust a sales order’s total with discounts and tax. Fiddle applies them in a set order so the math stays predictable.

Discounts

Discounts can be applied at two levels:

  • Line discount — reduces a single line item, as a percentage or a fixed amount.
  • Order discount — reduces the order subtotal after all lines are added.
  1. Open the sales order.
  2. To discount a line, enter the percentage or amount in the line’s Discount field.
  3. To discount the whole order, set the Order discount in the totals panel.

Taxes

Tax is calculated on the discounted subtotal, so discounts always come first.

  1. Choose a tax rate for the order, or let the customer’s default rate apply.
  2. Lines marked tax-exempt are excluded from the calculation.
  3. The tax amount appears as its own line in the totals.

The calculation order is: line discounts → order discount → tax. Tax is never charged on the discounted-away amount.

Totals breakdown

Field What it shows
Subtotal Sum of line totals after line discounts
Order discount Any whole-order reduction
Tax Calculated on the discounted subtotal
Total What the customer owes

Set a default tax rate on each customer so it fills in automatically on new orders.

Next steps

Discounts and taxes carry through when you convert a quote.

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