Receivables lets you assign discounts to your payment terms. You can also assign multiple discount line terms to each installment of your payment terms. For example, you might give your customer a 10% discount if they pay within 10 days, but only a 5% discount if they pay 11 to 20 days after the invoice date.

Discounts do not apply to Automatic Receipts. If you use the automatic receipts feature to create your Direct Debits, Receivables will not calculate discounts, even if your customers pay before the due date.

Prerequisites

• Define payment terms

To assign discount information to a payment term:

1. Navigate to the Payment Terms window.

2. Query or enter the payment term.

3. Choose Discounts.

4. Enter the discount percentage and number of Days for this payment term. For example, to give customers using this payment term a two percent discount if payment is received within ten days, enter '2' and '10' respectively.

5. To limit the period of time that the discount for this installment's discount line will be active, enter the Date, day of the Month, and the number of Months Ahead for this discount's expiration date. Receivables uses these values to calculate the discount date during invoice entry.