Invoice discounts and surcharges

When invoicing, you can grant discounts in various ways.

Contents

Description

Profit calculates the line discounts in the order process. Profit calculates the invoice discount on (a part of) the invoice. This also applies to invoice surcharges.

Three types of discounts are available at the invoice level:

  • Invoice discount

    Invoice discount is calculated on the entire invoice amount. You can set the invoice discount for each customer.

  • Payment discount

    Payment discount is an invoice discount which companies (sometimes) offer for fast payment. This 'discount' is given on the gross amount so that VAT must in fact be paid on the discount itself. This is typically a percentage in case of payment within a certain period of time.

  • Payment discount using the VAT calculation basis (Belgium)

    In this case, no VAT is calculated on the payment discount. To correctly journalise the VAT calculation basis required for the VAT declaration you must use an additional ledger account that you set up for the integration type.

  • Credit restriction

    Credit restriction is a negative discount to bear the costs of the credit period. If the sales contact pays on time, he can deduct the surcharge. Credit restriction is something different from payment discount. You use credit restriction to make customers pay quickly. This will benefit your cash flow, and at the same time save you time and effort otherwise spent on collecting payments. There is no legal obligation to actually pay the credit restriction, even if payment is made after the due date. Credit restriction is only invoked to limit the costs involved in invoice collections (interest, etc.).

Procedure

Also see

Directly to

  1. Invoicing and integration
  2. Configure a ledger, a journal and the VAT
  3. Configure payment methods
  4. Configure payment conditions
  5. Configure an article group
  6. Configure integration groups
  7. Configure journalising
  8. Configure a sales contact profile
  9. Configure a purchase contact profile
  10. Configure e-invoicing
  11. Configure the invoice discount, payment discount and credit restriction