How to apply Discount based on the Payment Terms?

Payment Terms are the conditions surrounding the payments that outline a discount if the terms are met. If you have selected Payment Terms for an Order, a discount can be applied while paying the Invoice.

In fact, in Xoro, we have an added ability to reflect a Suggested Discount on the basis of the Payment Terms applied to the Sales Order.

As an example, let’s say that you have applied the Payment Terms 5%15 Net 70 on the Sales Order. This means if a payment is made within 15 days, then a 5% discount is applied and the full amount is due within 70 days of being invoiced. So, if you have placed an Order for $1000 and you are making the payment within the first 15 days, based on the Payment Term the Customer is eligible for a $50 discount (5%*$1000). This discount can be applied while paying the Invoice.

How does it work?

  • From the Options tabs in the Invoice, click on ‘Pay Invoice’.

  • It will open the “Invoice Payment Module”.
  • Click on the amount under the “Discount ” column to apply the Discount.

  • It will show you the ‘Payment Terms’ that you had applied and will give you an amount for ‘Suggested Discounts’.

  • Click on ‘Apply Discount’ to apply the discount.

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