How to Setup An Other Item for Discounts on Estimates
Because they don't have overhead markups, other items are really handy for setting up line items like discounts. Here's a few tips on setting up an item that you can use to apply discounts to estimates:
- Name the other item Discount
- Use Each as the units
- Set the Unit Cost to $0.00 (you will customize this on each estimate where you want to apply a discount)
- Choose the Pricing Calculator option to Set Fixed Profit
- Set the Fixed Profit Margin to 0% (we don't want to add any profit to the discount)
Now you have an item that you can add to estimates for a discount. Simply add this Discount item to an estimate, set the unit price to a negative amount to apply a discount (e.g. -$300.00) and the 0% profit margin will ensure the discount gets applied correctly.
NOTE: You want to set the UNIT PRICE, not the UNIT COST on the estimate to the amount of the discount since your costs aren't decreasing. A discount is only decreasing your price, not your costs.