Early-Payment Terms or Discounts

Early-payment terms are discounts you give or receive for paying an invoice or bill within a certain time. The terms also indicate when the complete invoice amount is due.

Early-payment discounts are tracked in the Sales Discounts account from your list of accounts.

Customers

There are three ways to enter a customer's early-payment terms:

In Settings. These terms apply to customers that you do not provide specific terms for.
In the customer's record. The terms recorded in a customer's record take precedence over the terms in your company settings.
When processing an invoice. The terms recorded in the invoice overrides terms set up in your company settings and the customer's record.

If your customer pays within the discount period, Sage 50 Accounting calculates the discount and updates the accounts when you process the payment.

In the invoice, you can also choose to calculate the discount before applying the sales tax.

Vendors

There are two ways to enter early-payment terms offered by your vendor

In the vendor's record.
When recording a bill. The terms recorded in the bill overrides the terms in the vendor's record.

With one-time vendors, you can choose to calculate the discount before the sales tax is applied in the bill.

The Daily Business Manager reminds you when an early-payment discount is about to expire, so you can take advantage of early-payment discounts your vendors offer you.

What do you want to do?

Add or change early-payment terms for a customer

Add or change early-payment terms for a vendor

Add or change early-payment terms for all customers