Special deductions and incentives

Special deductions and incentives refer to exclusive cost savings on particular products and services. Unlike regular discounts, these deductions do not reduce the taxable base on sales invoices, i.e., they are applied after VAT calculations and do not decrease the taxable base.

📘

Discounts applied before VAT

For information on how to handle discounts that are applied before VAT calculations, see Discounts and Payment terms.

Some examples of special deductions include incentives, rebates, etc. By updating your Monite partner settings, you can provide a custom name for these special deductions on your invoice PDFs.

You can provide a value for these deductions when creating and updating invoices or quotes.

Add a deduction

When creating or updating a receivable—invoice or quote, use the deduction_amount field on the document level to specify the deduction. You can also provide additional descriptions for special deductions by using the deduction_memo field as shown:

curl -X POST 'https://api.sandbox.monite.com/v1/receivables' \
     -H 'X-Monite-Version: 2024-01-31' \
     -H 'X-Monite-Entity-Id: ENTITY_ID' \
     -H 'Authorization: Bearer ACCESS_TOKEN' \
     -H 'Content-Type: application/json' \
     -d '{
       "type": "invoice",
       "currency": "EUR",
       ...
       "deduction_amount": 900,
       "deduction_memo": "Discount on small-scale renewable energy systems purchase."
     }'

After creating a deduction, you can access its value on the deduction_amount field on the invoice or quote response objects. By default, this value appears under the "Incentives" heading on receivables PDFs. However, you can customize the title of these deductions by updating your partner settings with your desired title.

Update the deduction title

You can provide a custom deduction title using the deduction_title field on partner settings. To update the deduction title:

curl -X POST 'https://api.sandbox.monite.com/v1/settings' \
     -H 'X-Monite-Version: 2024-01-31' \
     -H 'X-Monite-Entity-Id: ENTITY_ID' \
     -H 'Authorization: Bearer ACCESS_TOKEN' \
     -H 'Content-Type: application/json' \
     -d '{
       "receivable": {
         "deduction_title": "STC incentive"
       }
     }'

A successful request changes the headings for special deductions on invoice and quote PDFs.