Giving a Prompt Payment Discount

You can give a prompt payment discount when receiving a Debtor payment in the Debtor Receipts window.

Note: that you can only apply a prompt payment discount to an invoice line.

A prompt payment discount may have a GST component.

1. Go to the Debtor Payments window, either via:

   • Clicking on the New Payment icon in the Transactions tab of the Debtor window, or

   • Going to Transactions > Debtor Receipts > Debtor Receipt. Select the required debtor account.

2. Tick the PP DISC checkbox for the required invoice line or with the line highlighted, press the spacebar.

   The calculated discount amount, based on the prompt payment discount percentage recorded for the debtor, is displayed in the PP Disc column, and the adjusted invoice line total displayed in the Receipt Amt column.

3. Return the cursor to the Amount field and press the spacebar to display a revised payment total for this debtor receipt, including the prompt payment discount you have just given.

4. Save the transaction.

You can review the debtor payment receipt transaction, including the prompt payment discount credit transaction:

1. In the debtor account, click on the Transactions tab.

2. Highlight the current period in the top frame (period '0').

3. Scroll through the transactions in this period until you see the payment transaction. The prompt payment discount credit transaction has a Ref 1 field of 'Prompt Payment' and a Ref 2 field of 'Discount'.