Terms discounts

In addition to line and whole order discounts, you can also offer terms discounts to your customers. Terms refers to:

• The method of payment that you accept
• The length of time before an invoice is due
• Any cash discount you offer to your customer as an incentive to pay their invoice by a designated date

For example, if the terms are 2n30, the customer receives a 2% discount if they pay the net amount due within 30 days. Each customer record carries a default terms code that describes the basics for discount, discount date calculation, and due date calculation. If the discount terms are line-based, you can change them to order-based. You cannot change order-based terms to line-based terms, unless there are no line items on the order.

Discounts can be exempt. When you enter a return order for an invoice that had a terms discount amount on the order, the discount is adjusted, based on the amount of the correction. If Allow Credit Discounts is selected in SA Administrator Options-Customers-Cash Receipts, the terms discount on the original invoice is reduced, depending on the terms of the customer.