diff --git a/app/Jobs/Document/CreateDocumentItem.php b/app/Jobs/Document/CreateDocumentItem.php
index 1f5dffb50..c04244708 100644
--- a/app/Jobs/Document/CreateDocumentItem.php
+++ b/app/Jobs/Document/CreateDocumentItem.php
@@ -45,7 +45,7 @@ class CreateDocumentItem extends Job
         if (!empty($this->request['discount'])) {
             $discount = $this->request['discount'];
 
-            if ($this->request['discount_type'] === 'normal') {
+            if ($this->request['discount_type'] === 'percentage') {
                 $item_discounted_amount = $item_amount -= ($item_amount * ($this->request['discount'] / 100));
             } else {
                 $item_discounted_amount = $item_amount -= $this->request['discount'];
@@ -150,10 +150,10 @@ class CreateDocumentItem extends Job
                     $item_tax_total += $tax_amount;
                 }
 
-                if (!empty($this->request['discount_type']) && $this->request['discount_type'] === 'normal') {
-                    $item_amount = ($item_amount - $item_tax_total) / (1 - $discount / 100);
-                } else {
+                if (!empty($this->request['discount_type']) && $this->request['discount_type'] === 'fixed') {
                     $item_amount = ($item_amount - $item_tax_total) - $discount;
+                } else {
+                    $item_amount = ($item_amount - $item_tax_total) / (1 - $discount / 100);
                 }
             }
 
@@ -186,7 +186,7 @@ class CreateDocumentItem extends Job
         $this->request['quantity'] = (double) $this->request['quantity'];
         $this->request['price'] = round($this->request['price'], $precision);
         $this->request['tax'] = round($item_tax_total, $precision);
-        $this->request['discount_type'] = !empty($this->request['discount_type']) ? $this->request['discount_type'] : 'normal';
+        $this->request['discount_type'] = !empty($this->request['discount_type']) ? $this->request['discount_type'] : 'percentage';
         $this->request['discount_rate'] = !empty($this->request['discount']) ? $this->request['discount'] : 0;
         $this->request['total'] = round($item_amount, $precision);
 
diff --git a/app/Jobs/Document/CreateDocumentItemsAndTotals.php b/app/Jobs/Document/CreateDocumentItemsAndTotals.php
index 7d94b53e2..4d971ebf4 100644
--- a/app/Jobs/Document/CreateDocumentItemsAndTotals.php
+++ b/app/Jobs/Document/CreateDocumentItemsAndTotals.php
@@ -71,7 +71,7 @@ class CreateDocumentItemsAndTotals extends Job
         }
 
         if (!empty($this->request['discount'])) {
-            if ($this->request['discount_type'] === 'normal') {
+            if ($this->request['discount_type'] === 'percentage') {
                 $discount_total = $sub_total * ($this->request['discount'] / 100);
             } else {
                 $discount_total = $this->request['discount'];
@@ -195,7 +195,7 @@ class CreateDocumentItemsAndTotals extends Job
             $discount_amount = 0;
 
             if (!empty($item['discount'])) {
-                if ($item['discount_type'] === 'normal') {
+                if ($item['discount_type'] === 'percentage') {
                     $discount_amount = ($item_amount * ($item['discount'] / 100));
                 } else {
                     $discount_amount = $item['discount'];
diff --git a/resources/assets/js/views/common/documents.js b/resources/assets/js/views/common/documents.js
index cfc4ce7f1..486ffeed7 100644
--- a/resources/assets/js/views/common/documents.js
+++ b/resources/assets/js/views/common/documents.js
@@ -70,7 +70,7 @@ const app = new Vue({
     },
 
     mounted() {
-        this.form.discount_type = 'normal';
+        this.form.discount_type = 'percentage';
 
         if ((document.getElementById('items') != null) && (document.getElementById('items').rows)) {
             this.colspan = document.getElementById("items").rows[0].cells.length - 1;
@@ -118,7 +118,7 @@ const app = new Vue({
                 let line_discount_amount = 0;
 
                 if (item.discount) {
-                    if (item.discount_type === 'normal') {
+                    if (item.discount_type === 'percentage') {
                         if (item.discount > 100) {
                             item.discount = 100;
                         }
@@ -249,7 +249,7 @@ const app = new Vue({
 
             // Apply discount to total
             if (global_discount) {
-                if (this.form.discount_type === 'normal') {
+                if (this.form.discount_type === 'percentage') {
                     discount_total = parseFloat(sub_total + inclusive_tax_total) * (global_discount / 100);
                 } else {
                     discount_total = global_discount;
@@ -398,7 +398,7 @@ const app = new Vue({
         },
 
         onAddLineDiscount(item_index) {
-            this.items[item_index].discount_type = 'normal';
+            this.items[item_index].discount_type = 'percentage';
             this.items[item_index].add_discount = true;
         },
 
@@ -415,7 +415,7 @@ const app = new Vue({
         onAddTotalDiscount() {
             let discount = document.getElementById('pre-discount').value;
 
-            if (this.form.discount_type === 'normal') {
+            if (this.form.discount_type === 'percentage') {
                 if (discount < 0) {
                     discount = 0;
                 } else if (discount > 100) {
diff --git a/resources/views/components/documents/form/line-item.blade.php b/resources/views/components/documents/form/line-item.blade.php
index a1128842c..2f9fde784 100644
--- a/resources/views/components/documents/form/line-item.blade.php
+++ b/resources/views/components/documents/form/line-item.blade.php
@@ -163,8 +163,8 @@
                                     <div class="form-group mb-0 w-100" style="display: inline-block; position: relative;">
                                         <div class="input-group mb-0 select-tax">
                                             <div class="input-group-prepend">
-                                                <button class="btn btn-sm" :class="[{'btn-outline-primary' : row.discount_type !== 'normal'}, {'btn-primary' : row.discount_type === 'normal'}]"
-                                                        @click="onChangeLineDiscountType(index, 'normal')" type="button">
+                                                <button class="btn btn-sm" :class="[{'btn-outline-primary' : row.discount_type !== 'percentage'}, {'btn-primary' : row.discount_type === 'percentage'}]"
+                                                        @click="onChangeLineDiscountType(index, 'percentage')" type="button">
                                                     <i class="fa fa-percent fa-sm"></i>
                                                 </button>
                                                 <button class="btn btn-sm" :class="[{'btn-outline-primary' : row.discount_type !== 'fixed'}, {'btn-primary' : row.discount_type === 'fixed'}]"
diff --git a/resources/views/components/documents/form/totals.blade.php b/resources/views/components/documents/form/totals.blade.php
index 09ee01af8..0d1525198 100644
--- a/resources/views/components/documents/form/totals.blade.php
+++ b/resources/views/components/documents/form/totals.blade.php
@@ -57,8 +57,8 @@
                                                 <div class="col-sm-8">
                                                     <div class="input-group">
                                                         <div class="input-group-prepend">
-                                                            <button class="btn btn-sm" :class="[{'btn-outline-primary' : form.discount_type !== 'normal'}, {'btn-primary' : form.discount_type === 'normal'}]"
-                                                                    @click="onChangeDiscountType('normal')" type="button">
+                                                            <button class="btn btn-sm" :class="[{'btn-outline-primary' : form.discount_type !== 'percentage'}, {'btn-primary' : form.discount_type === 'percentage'}]"
+                                                                    @click="onChangeDiscountType('percentage')" type="button">
                                                                 <i class="fa fa-percent fa-sm"></i>
                                                             </button>
                                                             <button class="btn btn-sm" :class="[{'btn-outline-primary' : form.discount_type !== 'fixed'}, {'btn-primary' : form.discount_type === 'fixed'}]"
diff --git a/resources/views/components/documents/template/line-item.blade.php b/resources/views/components/documents/template/line-item.blade.php
index 0472b8053..8f401b63a 100644
--- a/resources/views/components/documents/template/line-item.blade.php
+++ b/resources/views/components/documents/template/line-item.blade.php
@@ -33,7 +33,7 @@
     @if (!$hideDiscount)
         @if (in_array(setting('localisation.discount_location', 'total'), ['item', 'both']))
             @stack('discount_td_start')
-                @if ($item->discount_type === 'normal')
+                @if ($item->discount_type === 'percentage')
                     <td class="discount">{{ $item->discount }}</td>
                 @else
                     <td class="discount">@money($item->discount, $document->currency_code, true)</td>