Early-payment terms are discounts you give or receive for paying an invoice or bill within a certain time. The terms also indicate when the complete invoice amount is due.
There are three ways to enter a customer's early-payment terms:
- In Settings. These terms apply to customers that you do not provide specific terms for.
- In the customer's record. The terms recorded in a customer's record take precedence over the terms in your company settings.
- When processing an invoice. The terms recorded in the invoice overrides terms set up in your company settings and the customer's record.
If your customer pays within the discount period, Sage 50 Accounting calculates the discount and updates the accounts when you process the payment.
In the invoice, you can also choose to calculate the discount before applying the sales tax.
There are two ways to enter early-payment terms offered by your vendor
- In the vendor's record.
- When recording
The terms recorded in the bill overrides the terms in the vendor's record.
The Daily Business Manager reminds you when an early-payment discount is about to expire, so you can take advantage of early-payment discounts your vendors offer you.