Early payment discount rewards customers who pay cash or before the due date: you grant them a reduction, as a percentage of the net amount. DoliPlus automates this calculation, from setting the rate to the accounting entry. Apply it in just a few clicks to your customer invoices.

Early payment discount on customer invoices

First, define the discount rate on the customer record.

early payment discount: set the rate on the DoliPlus customer record

Note: the pen icon on “Fixed discount” allows you to later access details of granted discounts.

details of discounts granted to the customer in DoliPlus

The rate is then automatically applied to the invoice. Remove or modify it if needed.

When generating the invoice, DoliPlus calculates the discount amount based on the net amount.

 

discount amount calculated on the net amount in DoliPlus

Recording payment of a discounted invoice

Recording the payment is a two-step process:

  1. issue the payment for the reduced amount;
  2. mark the invoice as “Partially Paid”: a form then allows you to confirm the discount amount.

 

invoice marked as partially paid in DoliPlus

confirming the discount amount for settlement in DoliPlus

Early payment discount and accounting

This process prepares the accounting entries. When generating the sales journal, the discount is allocated to the account defined in the accounting module admin console. Learn more about accounting export

Note that the granted discount can only be recorded after the invoice is paid. Therefore, transferring to accounting before payment won’t show this allocation in account 665.

 

accounting allocation of the discount in account 665 in DoliPlus

In summary, the discount is set up just once, on the customer record. Then, DoliPlus applies it to each invoice, secures payment recording, and prepares the corresponding accounting entry.

Why offer early payment discounts to your customers?

A cash discount is primarily a cash flow lever. By offering a small reduction, you encourage your customer to pay earlier. You get paid faster and reduce your payment delays.

For you, the benefits are threefold:

  • improved cash flow: early payments come in quicker;
  • better customer relations: the discount is seen as a commercial gesture;
  • reliable management: DoliPlus calculates the reduction and accounting entry automatically.

An invoice discount combines cash flow benefits with rigorous tracking. That’s why many businesses include it in their payment terms.

Learn more

 

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