Discounted Payment

If the debit is closed before the due date, a discount can be applied on the payment amount. The discount rate to be applied to discounted payments is specified on the payment transactions window accessed through the invoice, or on the Discount field of the payment collection plan line. Prepayment interest cannot be recorded on the line where the discount rate is specified. Even if a prepayment Interest already exists on the line, this value is reset when the Discount Rate is entered. Discount rates cannot vary depending on conditions. However, a discount rate can be applied for payments processed until the date entered on the Date field.
This option is used to link the transaction on the line with transactions listed on the Discounted Transactions window.
The Cash Payment or Cash Collection AR/AP slips or the Bank Money Orders (received) or Bank Money Orders (issued) Slips are used to close invoices with debt tracking.
The AR/AP Code field of AR/AP and bank slips is used to specify the AR/AP of the transaction. Then the Discounted Payment option located in the right mouse button menu is selected. Payment transaction lines of the invoices that the slip can close are listed. The discounted payment transaction to be closed with the slip is selected. The amount information of the selected slip is transferred into the Debit or Credit column of the AR/AP or bank slip. The amount to be paid resulting from the discount applied to the payment transaction is transferred into the Payment (Discounted) field. After this transaction, the debt-tracking window indicates that the payment of the invoice is closed by the slip for which the discounted payment is processed.
The discount is then posted to G/L and tracked under the discounts on payments account.