Setting a debtor with Settlement Discount is a great way to increase cash flow, as the debtor will only receive their discount if they pay the invoice before the Early Settlement due date.

Debtor Setup Settlement Discount

To set the early settlement discount setting on a debtor follow these instructions:

	Debtors - Settlement Discount

	Debtors - Settlement Discount
1	Load up Debtor Entry in Debtors, Entry, Enter Debtors. Open
2	Search for the debtor, and click on the Terms tab. Open
3	To set this customer up to be on Settlement Discount, you need to change the Discount Type to Discounts given at Payment Time.
4	The Early Payment Terms Type can be different to the Default terms Type. The Default Terms Type is what sets the Due Date on an invoice. Some stores will set the Default Terms to be a Normal Monthly Trading Account (Due in 30 days after EOM), but set the Early Payment Terms Type be 25 Days after End of Month to convince their customers to pay BEFORE the due date. Its up to you. Early Payment Grace Period: This is so you can allow a certain number of days “buffer”. So if 2 was entered, the early Early Settlement Due Date would be an additional 2 days before the discount wasnt given.
5	Press F9 to save.

Discount Types

Manual Discounts and Debtor Discounts

Striven will put any manual discounts created in POS (F4 or F5) and any Debtor Discounts to be only given if the invoice is paid on time for Early Settlement Discount customers.

Sales Quantity Discount (Qty Break pricing)

Please be aware that any Quantity Pricing discounts would ALWAYS apply to Early Settlement Discount customers even if they didnt pay their invoice on time.

Contract Pricing

Sometimes you still want to give particular customers a discount even if they may not pay their invoice on time. This can be done in the Contract Pricing window. It defaults to No, you if you want it always to apply for Early Settlement customers ensure you change Apply Discount Immediately to Yes.

Manual Overrides

Sometimes you may want to mark a particular product/s from only applying if paid on time to be given immediately. You can set an ESD discount to be an Immediate discount by pressing F4 - Discount, F4 again, then I - Give Discounts Immediately.

It will then mark it as immediate discount.

POS

When a sale is created in POS to a Settlement Discount customer, it would look like the following:

When the invoice comes out, it would show the following:

Debtor Payments

When a payment is made it should show the following:

Quick Entry

If today's date is before the Early Settlement Discount Due date it would show the following, where the total amount to way includes the Discount.

If it was after the Early Settlement Discount Due date, it would show the FULL UNDISCOUNTED amount that needs to be paid off.

Full Payment Allocation Entry