Discount terms - ideas?

Hi again-
Our current system allows us to give discounts to certain qualified customers such as net 15 terms where they would get a 5% discount if paid in 15 days. If not paid in that timeframe, then no discount is applied.

Can anyone help me with a creative solution to this in ERPNext? I’ve looked at several options but nothing seems quite right. We currently just print on the invoice at the bottom like “5% discount if paid within 15 days” so it’s nothing really fancy - just the text on the invoice and then the ability to put in the discount when we receive the payment and show $0 balance by auto calculating the discount.

Thanks
Heather

2 Likes

Currently there is no such build in feature to auto apply discount based on payment terms. You have to write the terms on Payment Terms / Terms and Conditions. And then have to enter the discount manually on payment entry.

So, if we have someone that takes a discount on their payment, we enter it on payment entry under deductions/loss but it continues to think that invoice has not been paid. How do we have ERPNext “know” that this invoice is completely paid.

For instance, customer invoice is $3000. Customer has discount of 5% so they pay $2850 and we enter that in payment. Now what? This $150 is still showing outstanding. Any ideas?

I am also curious how to do this. I tried to discount the early payment and assign a deduction/loss to an account and cost center but my Sales Invoice is still marked Unpaid.

I think this post will help you solve it. Payment Entry - Deductions/Loss not working

In brief, just check in your allocation amount (in last column) amount should be equal to your Sales Invoice and the amount of discount given should be shown as -ve amount under deduction table. So the total of (i) allocation table & (ii) deduction table equal to the payment Received.

Interesting. I’m going to cancel a payment entry I did today with discount and try to do it this way. I didn’t think I was able to type into the allocated amount box but I will try it tomorrow!