💁Agenda of the Video▶️: To share easiest and simplest video in this topic.
💁A discount offered to a customer for paying an invoice before the due date is called an early payment discount.
📝It's also known as a Prompt Payment Discount or Cash Discount.👍
Payment Discount Tolerances:
🟩We can Set Up a "Payment Tolerance" to close an invoice when the payment doesn't fully cover the amount on the invoice.
⬜For Example, Payment Tolerances are typically for small amounts that would cost more to correct than to just accept.
🟩We can Set Up a "Payment Discount Tolerance" to Grant a Payment Discount after the *Payment Discount Date*.
🟩Use "Payment Tolerances" so that every outstanding amount has a set maximum allowed Payment Tolerance.
🟩If the Payment Tolerance is met, the Payment Amount is analyzed.
🟩If the Payment Amount is an underpayment, the underpayment fully closes the outstanding amount.
🟩A Detailed Ledger Entry is posted to the Payment Entry so that NO Remaining A is left on the Applied Invoice Entry.
🟩If the Payment Amount is an Overpayment, then a new Detailed Ledger Entry is posted to the Payment Entry so that NO Remaining Amount is left on the Payment Entry.
🟩We can Set Up Payment Discount Tolerances so that if you accept a Discount after the Payment Discount Date, it always posts to a "Payment Discount" or "Payment Tolerance" Account.
