Set up a cash discount #
To set up a cash discount, go toand click on Create. Add a Percent type of term with a corresponding value (e.g. 98% of the total price for a 2% discount) and the number of days during which the offer is valid. You can also change the default balance term if needed.
Start offering the cash discount #
Now, you can create a customer invoice and select the cash discount payment term you added. Once the invoice is validated, CPA Books will automatically split the account receivables part of the journal entry into two installments having different due dates. Since the discounted price is already calculated, your payment controls will be simplified.
Grant the cash discount #
The customer fulfilled the payment terms and therefore benefits from the cash discount. When you process the bank statement, match the payment with the related journal entry. Then, select the remaining cash discount and click on Create Write-off to reconcile it.
Register the full payment #
In this case, the customer has not fulfilled the payment term and cannot benefit from the cash discount. When you process the bank statement, match the payment with the two related journal entries.