Learn how to give your customers a discount for early payment.
Do you want to give a discount to customers who pay their invoices early? We'll show you how in the steps below.
Step 1: Create the invoice
While you can give your customers discounts for early payment, discounted amounts are not automatically calculated. If your customer pays early and qualifies for a discount, you have to go back to the invoice and update it to include the discount.
Here's how to create the invoice.
Select the terms you wish to use. If the Terms you want to use are not set up yet:
From the Terms drop-down, select Add New.
Check the box Apply discount if paid early then set the discount rate and days.
Note the Due date generated by the Terms.
Specify the products/services for the invoice and select your tax rate.
In the Discount percent field, enter the discount rate that matches the selected term. Note the Balance due.
In the Message displayed on invoice, enter: Balance due is [Balance due with discount] if paid by [Due date].
Remove the Discount percent to return to the original Balance due.
Select save and send.
When your customer gets the invoice, they will know exactly how much to send in, if they wish to pay early.
Step 2: Receive the payment.
Here's how to receive the payment.
Find and open the invoice.
In the Discount percent field, enter the discount per the terms you set.