Allowing Discounts on Payment Collection

Some transactions may be eligible for discount when they are collected. The discount terms for a customer are identified in the customer's payment terms. Payment terms are defined using Payment Terms (PYT) and assigned to a customer using Customers (CUS).

The payment terms can calculate a discount due date and determine the discount percentage available to the customer. The amount of discount is calculated by multiplying the transaction amount by the first discount percentage on the account.

Note: If payment terms are used and a discount applies, the Payment Collection Run (PYC) selects the transaction for payment and allows the discount, irrespective of the discount date and payment due dates.

It is assumed that if you are collecting payment via a bank transfer, the onus is on your organization to collect the payments in time for the discount to apply. Therefore, any transactions with an eligible discount should be collected immediately.

If you do not want to allow the discount, adjust the transaction details using Account Allocations (ACA). You can also alter the customer's payment terms.

Note: If the Immediate Settlement option on Customers (CUS) has been selected, then the transaction is selected for collection in the next collection run regardless of the due date, and any discount is allowed.