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Prompt Payment Discount / Settlement Discount

Started by Jordan Hartley-Smith in Feature Requests | Under Consideration

The ability to apply a prompt payment discount to an Accounts Receivable invoice from the match items screen in the Bank Reconciliation. Either as a % of as a total $ value.

The current process of applying a credit note is cumbersome and slow.

Ideally the ability to view discounts given either by having them grouped to a single chart of account code or in a report would be excellent.

The function will need to correctly account for GST based on the contents of the original invoice (pro-rata basis, same as if applying a credit note) so that those or payments or invoice basis do not over pay GST.
Official Xero Reply
Hi everyone, jumping in with an update for you all, at the start of May 2019.

There's been a bit of change since we last popped in on this request - new invoicing is in it's last stage of being made live to everyone. The scope of new invoicing changed throughout the build with shifting priorities, and dependencies of work.

As Craig mentioned earlier - Work for prompt payment discounts is a cross-functional effort that involves resources from multiple product teams. Looking realistically over the planned work for 2019 we know prompt payment discounts will not be entering the road map for the next wee-while.

All this is mind, though not automatic, we do want to re-cap the current options available to use within the product where this is a necessity for your business right now.

1. Edit the original invoice & add a discount for the prompt payment % or amount (with new invoicing)
2. Have written explanation of the prompt payment acceptance within your org's invoice terms of payment. When reconciling you could use the adjustment feature to reduce and reconcile the amount of the prompt payment discount
3. Set up a negative inventory item, that can be added to the invoice when coupled with online invoicing your customer will be able to see updates in real time

Appreciate the importance for you all here. Any open scope to pick up and begin work on prompt payment discounts and we'll be sure to return and update you again here.
 

Kavi S (Community Manager)

Best Reply as chosen by Jordan Hartley-Smith (Original Poster)
Hi everyone

Totally hear you. We started this work because we see the obvious value for your business. Unfortunately the primary thing this team focuses on is getting you paid as fast as possible. So while we thought we could do the build for this relatively quickly, since it adjusts the amount due on every invoice in Xero this has flow on effects for dashboard widgets, invoice list views, reporting, all of our API partners, basically everywhere in Xero that displays an outstanding invoice.

We’re moving forward - but unfortunately it’s bigger than we initially anticipated and we’ve had to engage multiple teams to work on certain bits and pieces - so it’s cross-dependency and that just slows things down.

Craig
 

Craig Walker (Xero Staff)