It's perfectly possible to update multiple columns in the same statement, and in fact your code is doing it. So why does it seem that "INV_TOTAL is not updating, only the inv_discount"?
Because you're updating INV_TOTAL with INV_DISCOUNT, and the database is going to use the existing value of INV_DISCOUNT and not the one you change it to. So I'm afraid what you need to do is this:
UPDATE INVOICE
SET INV_DISCOUNT = DISC1 * INV_SUBTOTAL
, INV_TOTAL = INV_SUBTOTAL - (DISC1 * INV_SUBTOTAL)
WHERE INV_ID = I_INV_ID;
Perhaps that seems a bit clunky to you. It is, but the problem lies in your data model. Storing derivable values in the table, rather than deriving when needed, rarely leads to elegant SQL.