How to give an early payment discount

Early payment discount is a payment term which gives you the possibility to give a discount to customers who pay before the due date stated on the invoice. The reason for this is to give the customer an incentive to pay on time and thereby ensuring your company's profit margins and cash flow.

Before you can give the customer an early payment discount, you need to enter the discount in the payment term. Read more about this in Early Payment Discount. Once done, you can follow the process below to give the customer an early payment discount. When the customer pays the invoice with the early payment discount, you can register this payment as you normally do. The payment window contains a column in which you select the early payment discount in order to be able to close the invoice. Read more about this in Entering Receipts and Payments in the Customer and Supplier Ledger.

How to give an early payment discount to a customer

Create an order in the Sales and Invoicing module.
From the drop-down list Payment terms, select the payment term that you associated with the early payment discount in the Properties Register.
On the invoice print out, you will be able to review the discount offered to the customer, if he/she pays before the due date.

The Early Payment Discount has now been offered to the customer.

Note! Changes in payment terms are not retroactive. Orders created before the change was made will not be updated automatically. However, you can select a different payment term, click Save and re-select the edited payment term from the drop-down list.