A free line Item refers to a product or service listed on an invoice or order that is provided at no cost to the customer. Even though the item appears as part of the transaction, its price is marked as zero cost ($0.00), meaning it doesn’t affect the total payable amount.
These items are typically used for promotional purposes, like offering a free gift, sample product, or shipping. Businesses use free line items to add value, improve customer satisfaction, or encourage purchases. Despite being free, the line item includes a full description, just like paid items, so the customer knows exactly what they received.
Key Characteristics of Free Line Items:
- Clearly marked with a unit price and a total of $0.00
- Often used to incentivize purchases or build loyalty
- Includes product or service details, like any regular payable item
- Doesn’t affect the overall invoice total or customer billing
Example
A customer buys a skincare product. The invoice includes:
Moisturizing Cream (100ml) – $25.00
10ml Toner (Free Sample) – $0.00
Total – $25.00