Hello,
Problem
We plan to give discount to our customer if they pay early and charge additional charge as late payment fee.
We have to charge/give discount as follows -
- If customer pays on the same day, give 1% discount on invoice amount
- If customer pays 1 day after due day, 1% charge on invoice amount
- If customer pays 2 days after due day, 2% charge on invoice amount
- If customer pays after 3 days, 4% charge on invoice amount
Proposed approach
We are planning to improve the current ‘Payment Terms template’ to support configuration of additional discounts or interest by adding following child table -
Late payment charges
| Payment Term | Days since creation | Late payment charge percentage | Max charge |
|---|---|---|---|
| Discount on same day payment | 0 | -1.00% | 0 |
| Interest on d+1 | 2 | 1.00% | 300 |
| Interest on d+2 | 3 | 2.00% | 300 |
| Interest on d+3+ | 4 | 3.00% | 500 |
The above configuration will be referred at the time of creating a payment entry to calculate the discount or late payment charge. Based on it, either a debit note or credit note would be created against the customer.
Need your views on the approach.