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 for auto-application of Discount (%). Click here to learn how Pricing Rule functions.
2. Discount on Net Total and Grand Total
In the "Additional Discount" section, you can apply discount as amount or as percentage.
Discount on Net Total
If Discount Amount is applied on Net Total, then item's Net Rate and Net Amount is calculated as per the Discount Amount. Net Rate and Amount field will be visible only if Discount is applied using this feature.
Discount on Grand Total
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.