# Discounts and overrides in AvaTax

Source: https://developer.avalara.com/avatax-for-ap/lio2454130253868/

# Discounts and overrides in AvaTax

Understand the differences between discounts and overrides in AvaTax to manage transactions effectively.

Before continuing with transactions, be sure you understand the difference between discounts and overrides.

**Discount**: A discount is a reduction of the price on your item/service. AvaTax provides several ways that you can handle a discount, including price reductions, automatically distributed discounts, and manufacturer discount codes.

**Override**: An override occurs when your transaction overrides the normal behavior of the AvaTax tax calculation engine. You can use overrides to change the tax amount or tax date for a transaction.