Discounts in AvaTax transactions

AvaTax provides several options for handling discounts. However, before we get to into the details, we need to call out the different types of discounts you can apply, as AvaTax handles each differently. For example, vendor discounts are simply a price reduction in the sale amount of an item or service, while 3rd-party (manufacturer) discounts are, generally speaking, a price reduction sponsored by the manufacturer where the manufacturer compensates the vendor for the reduced price.

Below are some ways to represent a discount:

A reduction in the sale price
A discount to distribute among lines
A line item using a manufacturer discount tax code