Adding discounts to invoices

Band Pencil does not currently include a dedicated discount field on invoices. However, you can easily apply a discount by adding a negative line item.

How to add a discount

1. Open the invoice.
2. Add a new line item.
3. Enter a description such as “Discount” or “Promotional Discount”.
4. Enter the discount amount as a negative value.

This will reduce the total value of the invoice by the discount amount.

VAT considerations

If your invoice includes VAT, the discount line should normally use the same VAT rate as the items being discounted. This ensures the VAT total on the invoice is reduced correctly.

For example:

Description	Amount	VAT
Service Fee	£100.00	20%
Discount	-£10.00	20%

The VAT will automatically adjust to reflect the reduced total. If the discount line uses a different VAT rate (for example 0%), the invoice total will still reduce but the VAT amount may not adjust correctly.

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Paying with Stripe

Stripe does not allow line items with negative values when processing payments.

If an invoice containing negative line items is paid online through Band Pencil, the system will:

1. Add together all negative line items on the invoice.
2. Convert the total discount into a Stripe coupon.
3. Apply that coupon to the payment.

The coupon will:

• Be called “Invoice Deduction”
• Have a duration of once (so it can only be used once)
• Reduce the payment amount by the same value as the invoice discount