Configure the payment discount

You can use a payment discount. This is a percentage discount which Profit calculates on the total amount exclusive of VAT, minus the invoice discount and the combined discount plus the credit restriction. You can also specify that you want to calculate the payment discount on the amount including VAT, using the Calculation basis of payment discount incl. VAT setting in Order management. Profit determines the payment discount before the credit restriction, if any, is calculated, in other words after the invoice discount and the combined discount.

Profit can also calculate the payment discount via the VAT calculation basis if you set this up. This procedure is primarily common practice in Belgium.

Profit does not actually deduct the payment discount from the invoice amount; Profit only prints the amount on the invoice.

Example:

Profit calculates the payment discount on the total invoice amount. This is therefore the invoice amount exclusive of VAT.

Activate functionality

You activate the Payment discount functionality.

Ideally you should activate the new functionality at the end of the working day, or over the weekend. This is because during the activation process, a conversion will always occur, and during this conversion your employees cannot work in Profit. It is recommended that you first test a new activation in a test environment, before you implement it in the live environment.

To activate the functionality:

1. Go to: General / Environment / Management / Properties.
2. Go to the tab: Activation.
3. Select the check box of the functionality that you want to activate.

   Profit warns you that after activating the functionality the environment needs to be converted.

4. Click on: Yes to activate the function.
5. Click on: OK.

   Profit warns you that no other users can be logged on.

6. Click on Yes in the message.

Configure the integration type

You configure the payment discount per integration type. For each integration type, you can set a deviating number of days.

To configure the integration type:

1. Go to: General / Configuration / Integration settings / Integration type.
2. Open the properties of integration type Order management sales invoices.
3. Go to the tab: General.
4. Select the Use payment discount check box.
5. Enter a value in Days payment discount.

   You can print this number of days on the invoice layout.

   You do not select a ledger account because it is not being journalised. The payment discount is only passed along with the outstanding item.

6. Click on: OK.

Record the payment discount rate

You record the percentage of the payment discount per sales contact.

To record the payment discount rate:

1. Go to: 
   • Financial / Debtor / Debtor.
   • Order Management / Sales / Sales contact.
2. Open the properties of the debtor.
3. Go to the tab: Price/discount.
4. Enter a value inPayment discount (%).

   Profit copies this percentage when adding orders for the sales contact. You can still change the payment discount rate in the order.

5. Click on: OK.

Set inclusive of VAT for payment discount.

The payment discount calculation basis including VAT can be selected in the Logistics settings if you want to calculate the payment discount on the amount inclusive of VAT. If you do not set this, Profit automatically calculates the payment discount over the amount exclusive of VAT. The payment discount over the amount exclusive of VAT is the most common.

To record an account:

1. Go to: Order Management / Management / Settings.
2. Go to the tab: General.
3. Select the Calculation basis of payment discount incl. VAT check box if you want to calculate the payment discount on the amount incl. VAT.
4. Click on: OK.

Entry layout for purchase or sales entries in Financial

When you manually enter a purchase or sales invoice in Financial, you can specify the credit restriction or payment discount data. You can change the entry layout you use for purchase and/or sales entries and add the fields required for the credit restriction and/or payment discount. You can also add a new entry layout.

When the invoice is made payable, Profit takes account of any application of the credit restriction or payment discount.

To add an entry layout:

1. Go to: General / Management / Entry layout.
2. Select Financial entries (Purchase journal) (Profit).
3. Click on the action: Copy.
4. Enter the description.
5. Click on: Finish.
6. Go to the tab: Line.

   Under Line layout, the fields for the entry layout are displayed.

7. Drag the Payment discount (%) or Payment discount field to Line layout.

   The choice of the field depends on how you want to enter the payment discount.

8. If you want to be able to select or deselect this check box during entry, drag the Payment discount incl. VAT field.

   If the check box is selected the payment discount is calculated over the invoice total.

   If you deselect the check box, the payment discount is determined based on the invoice amount exclusive of VAT (the gross amount). In that case, the payment discount is calculated over the goods total.

   By default, the Payment discount incl. VAT check box is selected. If you want to change the preferred value of this setting, you can also do this on the Line Fields tab of the entry layout.

9. If you want to use credit restriction, drag the Days credit restriction﷓ field to Line layout.
10. If you want to use payment discount, drag the Days payment discount field to Line layout.
11. Click on: OK.

See also:

• Enter credit restrictions and payment discounts