In debt tracking transactions, a discount can be applied on the payment amount when the payment is performed before the debit closing date.
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. The specified discount rate indicates the discount to be applied to the payment amount when the debit on the line is paid until the specified date.
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. For example, instead of specifying a discount of 14% for the first 7 days, a discount rate is specified for payments done until the date specified on the date field.