Shogo can handle discounts in 3 different ways handle discounts, based on the availability of the discount breakout options provided by your POS provider.  Shogo can net discounts, post gross sales with discounts posted separately by category or post gross sales with discounts posted separately by reason/purpose.  

Below are examples:

Each example uses Food Sales of 60, Beverage Sales of 10, Food Discount of 5 because of a Kitchen error

1). net your discounts with their category sales
Food Sales: (55)
Beverage Sales: (10)

2). post gross sales with discounts posted separately by sales category
Food Sales: (60)
Beverage Sales: (10)
Food Sales Discounts: 5

OR
3). post gross sales with discounts posted separately by reason/purpose
Food Sales: (60)
Beverage Sales: (10)
Kitchen Error Discount: 5

*** Option 3 is not available for QuickBooks Online Canada. Shogo has to net discounts for the GST reporting.  

Changes to your Discount handling are made in Store Settings

Navigate to Settings>Stores. 

Click the store you would like to edit.

Click the Preferences tab. If you would like to change the settings, select Discounts Handling to select your preference. Click Save Preferences to save your changes.

Mapping your Discounts in your Accounting Settings

You can map your discounts by going to Settings>Accounting

Click the location you would like to edit and navigate to the Discounts section of the mapping. You will have the option to set defaults for your discounts:

You can assign different accounts to specific line items. All other items will be assigned your default and any new line item will automatically have the defaults applied. 

For how posting methods interact with sales tax, see This Article