Defect 268085-Tax Code for Discount Item in Sales Transactions > Item tab > Main Line should also use Tax Item field value in Customer Record > Financial tab SUMMARY: Discount uses incorrect Tax Code on Invoice if Discount is entered under Items tab > Discount Item field versus Discount entered as Item line. Alternate Solution: Enter the discount as a line item instead of entering it in the Main Line. Your defect has been prioritized as an S3