Early payment discount on an invoice?

Matt Aylett

How to put a option for a discount of 2% off invoice if paid within 14 days but also have the full cost if paid after 14 days.

Shane_6461899

Hi Matt,

There is no way to automate this.  You will need to do this manually. You need to manually track if the invoice is paid within 14 days or not, and if so manually add the discount. 

Regards,
Shane.

Matt Aylett

Thanks Shane. So the best way would be set 14 days as the terms and then if not paid make it an overdue account. Therefor not giving a discount. What would you suggest to make it rewarding to the customer to pay by the due date? Also how do I set the terms to be 14 days, then overdue after that? Thanks

Shane_6461899

Hi Matt,

To setup your terms for 14 days go to the terms list (Lists > Customer and Supplier Profile Lists > Terms List), right click > right click > New > Standard > Net Due in 14 Days > name the terms 14 Days (or whatever you want to name it) > OK. 

Next edit your preferences to start your ageing from transaction date, this way its overdue if not paid within 14 days of invoicing the customer.  To do this go to Edit > Preferences > Reports and Graphs > Company Preferences > Select Age from transaction date > OK.

To create your 2% discount go to the item list and create a new Discount item with a rate of 2%.  Add this to the invoice if paid with in 14 days.  Or you can add it to the invoice to start with, and remove it from the invoice if not paid with 14 days.  You can choose how you want to do this.

Hope this helps.

Regards,
Shane.

Matt Aylett

Not a problem. I have just done all of that but when I put that discount item onto an invoice it just gives a 2% discount on $2 for some reason so it just takes 4cents off the invoice total. I'm not sure why this is happening? Thanks

Shane_6461899

Hi Matt,

If you have multiple line items on the invoice and you want to apply the discount to the whole invoice add a subtotal item under the line items and under that add the discount item.  I'm guessing in your case the item directly above the discount item had a price of $2 which is why the discount was only 4 cents.  Once you add that subtotal item it should give you the correct result.  I have included a screen shot of an invoice using a subtotal item and discount item below to help make this as simple as possible.  Hope this helps.  Let me know how it goes.



Regards,
Shane.

Matt Aylett

Thanks Shane. Yeah that was the issue. I didn't have a subtotal. I was playing with it this morning and figured it out. Thanks for that. Matt