Payment Discount

A payment discount is used to encourage customers to settle their debts as soon as possible. It can be set up for a customer in Microsoft Dynamics GP and applied to an invoice. Customers can obtain a payment discount when they pay their invoices in a specified period of time.

If customers pay the order online, they can see the payment discount in the shopping cart and in the order details.

If a B2B customer pays the invoice and the payment discount has been applied, the customer will see two different invoice amounts in the invoices history - the total amount without the payment discount and the outstanding total amount with the payment discount.

Set Up a Payment Discount

In Microsoft Dynamics GP you can set up payment terms with discounts.

Step 1: Click: Administration > Setup > Company > Payment Terms. In the Payment Terms Setup window, create a new payment term.

Step 2: In the Discount field, select when a customer must pay the invoice to receive a discount.

NOTE

Currently, Sana only supports days.

Select Days and enter the number of days. Customers will get a discount, if they make payment within a certain number of days after the invoice date.

Step 3: In the Discount Type field, select Percent or Amount. You can set up either percentage or fixed amount discount.

  • If you select Percent, enter a percentage for the discount.

  • If you select Amount, enter a currency amount for the discount.

Step 4: In the Calculate Discount On list, select the amounts that the discount should apply to.

You can calculate the discount on the entire payment of the invoice, or on any of the amounts that typically appear on the invoice: tax, freight (shipping cost), miscellaneous (payment cost) and so on. You can choose any combination of these amounts, depending on what you want to apply a discount.

Step 5: Save the payment terms.

Step 6: Click: Sales > Cards > Customer. In the Customer Maintenance window, open the necessary customer. In the Payment Terms field, select the necessary payment terms with the discount.

The customers receive a discount based on their payment terms.