If you offer discounts for early invoice payment, you define a terms code for each of the methods you use to calculate discount amounts and discount periods.
Accounts Receivable uses the terms code you specify with an invoice to calculate the discount period and amount for the document.
If you use a terms code that includes multiple payments, Accounts Receivable sets up a payment schedule that includes separate discount information for each payment.
You can specify whether an invoice discount applies to a particular detail, or not. To indicate that a detail is not subject to the invoice discount, you clear the Discountable option for the detail on the A/R Detail Taxes screen, or select No for the Discountable option on the detail-entry table.
You can change the discount date, discount base, amount, and discount rate at any time until you post the invoice.
You must enter a discount date before you can enter an amount or a rate. The discount date determines whether a discount is available on the A/R Receipt Entry screen. If a discount is available, Accounts Receivable displays the available discount amount and the invoice total net of the discount when you apply receipts to the invoice.
You cannot enter a discount amount or percentage if the Discount Date field is blank.
You can also enter a volume discount by entering a negative detail line on an invoice, as long as the invoice total is a positive amount.
Note: Discounts do not apply to credit notes and debit notes.