Contract Discount Terms Overview

As a Head Contractor on the system you can apply discounts on payments to Subcontractors. Choose discount settings when creating a subcontract. The payment information exported from the system helps some accounting interfaces better manage and reconcile discounted subcontracts with this feature.

Disbursing a Discounted Payment

Before payment is disbursed, the Manage Payments page automatically deducts the discount if the progress claim is within the terms.

The Manage Payments page will display the discount amount in a Discount column.
There is no discount on tax
For example: If a progress claim amount after retention = $1,000; the Tax = $100; and a 2% discount is in effect for a Discount = $20 (2% * 1,000), then the Payment = $1,080 ($1,000 – $20 + $100).

Once payment is disbursed, the EFT file is generated net of the discount applied to each contract. Interfaces reflect discounts paid to Subcontractors based on the accounting package.

CGC and Spectrum: An extra field in the PMT line item reflects the discount
Timberline: An extra field appears in the progress claim record for available discounts
All Others: Payments are sent as net of discount (similar to split payments)
Note: If a Title Company or Client is disbursing funds, that organisation is responsible for discounts. The disbursing organisation has the ability to disable all contract discounts on a project from the Project Funding page.

Next: Creating Contract Discount Terms