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To make a coupon, follow these steps :

In Cart Administration, click on 'Coupons' under the 'Extra Features' heading.
Click on 'Create a new coupon'.
Assign it a coupon ID. This is what the customers will have to type to get the coupon.
Set the discount code. A reference chart is included below that shows you how to make discounts. As a note: If you based it on quantity and you want all items to count towards that quantity, make sure to build it as a global discount. (i.e., add the 'name' onto the end of the discount code.)
Set the priority. When multiple coupons might apply to a single item, the coupon with the highest priority is used.
Set the expiration date.
Put the partnumbers you want the coupon to be valid for into the text area, one per line. If you want it to apply to all items, you can simply check the box.

Discount Code : This code allows either a dollar-discount or a percentage-discount off the item price. If you desire the product to offer a dollar reduction, simply include the code: $x dollar discount for product. If you want to give a savings percentage for the product, use the code: x% percentage of discount for product. All entries MUST be numeric and include the currency ( $ ) or percentage symbol ( % ).

This variable is expandable by using the ( @ ), ( > ), or ( # ) symbols. To build a discount structure based on quantity use the ( @ ) or ( >) symbols your quantity, a colon, then the discount amount. To give a discount on every Nth item use the ( # ) symbol the Nth item, a colon, followed by the discount amount. If you prefix the discount code with the ( ! ) symbol, the discount will only be applied once rather then being applied to each item.

Discounts that begin with #, > or @ can be made global. To do this simply end the discount code with the global identifier. If a product is not made global than the discount can only apply to the 1 specific cart entry.

Please note that discounts are on a per-item basis, so if you have a discount of $10.00 on a product that only costs $4.95 the discount will be reduced, any remaining portion of the discount will be lost.

DISCOUNT CODE	Description
$4.95	Every item is reduced in price by $4.95
@5:$4.95	Once you purchase 5 items, Every item is reduced in price by $4.95 (including the first four)
!@5:$4.95	Once you purchase 5 items, The price is reduced by $4.95
>5:$4.95	The first 4 are regular price, Every item after that is reduced in price by $4.95
#5:$4.95	Every 5th item is reduced in price by $4.95
50%	Wow this item is 50% off
#2:100%	Buy one get one free
#3:50%	Buy two get the third one at half price
#3:50%:halfoff	This is a global discount. All items with this discount code will be used for calculating the quantities
#$100:$5:global	Get an instant $5.00 discount for every $100 dollars purchased
@10:5%:shirts	You could create a discount like this to allow customers to get a discount if they buy 10 or more or any shirt with this code
@10:5%:20:10%:50:15%	Quantities 1-9 regular price Quantities 10-19 all items are 5% off Quantities 20-49 all items are 10% off Quantities 50+ all items are 15% off
>10:5%:20:10%:50:15%	Quantities 1-9 regular price Quantities 10-19 only are 5% off Quantities 20-49 only are 10% off Quantities 50+ only are 15% off
@$1000:10%:global	Orders over $1000 dollars get an immediate 10% off.
>1:$10:2:$0:global	Give an instant $10 rebate if 1 or more products are purchased (one time only)
!@5:$4.95:10:$8.95	Once you purchase 5 items, The price is reduced by $4.95. If you increase the quantity to 10 items, the price will be reduced by $8.95 instead of $4.95
!>5:$4.95:10:$8.95	Once you purchase 5 items, The price is reduced by $4.95. If you increase the quantity to 10 items, the price will be reduced by $8.95 in addition to $4.95
shippingdiscount=X	A discount off of the shipping price. Use any of the above discount codes for X.
shippingdiscount=@$50:100%:global	A discount off of the shipping price. The entire order will be free shipping if the customer purchases $50.00 or more in products.
free shipping	Shipping will be completely free for the entire order. This option is only available for coupons, internal item discounts cannot use this option.