When you invoice a customer, you may decide to forgive certain charges; that
is, you decide not to bill the customer for a number of billable hours. If you
want to show this forgiven time on your invoice (some professionals call this a
"courtesy" item), you can handle it in one of two ways:
If you don't want to track forgiven charges for each of the services you
perform, create one discount item called Courtesy. On the invoice, enter the
full number of billable hours for a given service, then use the Courtesy item
to subtract the forgiven charge amount.
If you want to track your forgiven charges for each of your services, use
subitems that track your forgiven charges detail.
For example, you can create a service item called Courtesy, with a Rate of
0.00. Then you can create subitems for each of your services (Service A,
Service B, and so on). When you enter the amount of the forgiven charges on the
invoice, you must enter a negative number (because you are using a service
rather than a discount item).
You can see how many billable hours you've forgiven by creating a
sales by item