diff --git a/app/Jobs/Expense/CreateBillItem.php b/app/Jobs/Expense/CreateBillItem.php
index 07ff2d0dc..1826fa2cc 100644
--- a/app/Jobs/Expense/CreateBillItem.php
+++ b/app/Jobs/Expense/CreateBillItem.php
@@ -50,7 +50,7 @@ class CreateBillItem
 
         // Apply discount to tax
         if ($this->discount) {
-            $item_discount_amount = $item_amount * ($this->discount / 100);
+            $item_discount_amount = $item_amount - ($item_amount * ($this->discount / 100));
         }
 
         if (!empty($item_id)) {
diff --git a/app/Jobs/Income/CreateInvoiceItem.php b/app/Jobs/Income/CreateInvoiceItem.php
index 16269abac..6e6575dff 100644
--- a/app/Jobs/Income/CreateInvoiceItem.php
+++ b/app/Jobs/Income/CreateInvoiceItem.php
@@ -50,7 +50,7 @@ class CreateInvoiceItem
 
         // Apply discount to tax
         if ($this->discount) {
-            $item_discount_amount = $item_amount * ($this->discount / 100);
+            $item_discount_amount = $item_amount - ($item_amount * ($this->discount / 100));
         }
 
         if (!empty($item_id)) {