Negative tax rate for handling the purchase discount

Hi,

We have configured a separate tax type for handling the purchase discount and tax rates have been defined with negative. For 5% discount, the tax rate would be -5. So that when we apply the tax rate to the purchase order item, it will calculate the discount amount.

Example:

Item Price is 1000

Discount tax rate is -5

Calculated tax is -50

Hence, the negatve amount will get reduced from item price and total amount would be 950.

Would like to know is there any other way to handle this discount.

Shanthi