The latest version (18.3.8) allows to set early payment discount on invoices.
The feature is rough around the edges so it will be improved based on the feedback but feel free to test the concept. Early payment discount kicks in when invoice is paid before due date but it could be further improved to allow early payment discount to be applicable only if invoice is paid within a few days (e.g. 7 days) from invoice issue date rather than waiting for a day before due date (e.g. 30 days later).
When early payment discount is activated, for now the invoice will show notice as a note.
This could be also improved by showing the exact amount how much is payable if paid early.
In this specific example, let’s assume we have an invoice for $1,000 with early payment discount of 5%.
If customer pays $950 or more before due date, they will be eligible for early payment discount. If one or more invoices are eligible for early payment discount, you will see notice at the top of the screen under
Sales Invoices tab.
Clicking on the notice will show list of invoices (in this case just one) which are eligible for early payment discount.
When you click
Create button, early payment discount transaction(s) will be created for those invoices.
The invoice will be marked as paid after early payment discount transaction is created and when viewing the ledger or customer statement, it will be shown appropriately.
Why early payment discounts are not applied automatically
Those who are familiar with late payment fees concept in Manager might wonder why not apply discounts automatically if specific conditions are met. After all, late payment fees are automatically applied.
I’m leaning towards recognizing the way late payment fees are implemented was a mistake. It shouldn’t have been automated and Manager should have created manual entries which can be reviewed, adjusted or forgiven. I will see how implementation of early payment discounts goes and will probably make late payment fees to work the same way.