Create discount coupons in magento.

Click on Shopping Cart Price Rules under Promotions
Click on Add New Rule button that is right hand side.
Enter your Rule Name, select Websites and select Customer Groups you can specify any rule for any website or customer group.
Select Specific Coupon from Coupon dropdown. You can also enter any number to specify Uses per Coupon, Uses per Customer and also set From Date and To Date but these are optional.
Click on Actions from left side tabs.
Select any option from Apply dropdown except Buy X Get Y Free
Enter any value in Discount like 10 and select Yes from Stop Further Rules Processing dropdown.
Finally click on Save Rule. Now you can check your discount coupon on shopping cart. In above scenario 10% discount will be applied on shopping cart.

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