How Do I Apply a Discount on My Invoice in Gekko?

You’d like to offer your customer a discount on their invoice — but how exactly do you do that in Gekko? There are two ways to apply a discount: 

1) Apply the Discount Before VAT

Example:
Your product or service costs €500 including VAT (which is €413.22 excluding VAT), and you want to give a €50 discount (10%) on that total price, ending up with €450 including VAT.

Here’s how to do it:

• Create a new invoice and choose “including VAT”
• Enter a line item for €500
• Add another line item for €-50 (your discount)
• Set the VAT rate to 21% for both items

Gekko will first calculate the price excluding VAT, then subtract the discount (also excluding VAT), and finally add VAT on the reduced amount. This will result in a total of €450 including VAT.

In this case, the discount is calculated before VAT is applied.

Image 1a: Choose "including VAT" and enter €500 and €-50

Image 1b: This creates a final invoice of €450 incl. VAT with a €50 discount 

2) Apply the Discount After VAT

Example:
Your product or service costs €500 excluding VAT. First, VAT is added to make a total of €605. Then, you subtract a 10% discount, which results in a final total of €544.50 including VAT.

To do this:

• Create a new invoice and choose “excluding VAT”
• Enter a line item for €500
• Add a second line item for €-50 (the discount)
• Set the VAT rate to 21% for both items

This will show a subtotal of €450 excluding VAT, with VAT of €94.50 added on top.

Here, the discount is calculated after VAT is applied.

Image 2a: Choose "excluding VAT" and enter €500 and €-50

Image 2b: This creates a final invoice of €544.50 incl. VAT with a €50 discount