Use payment terms discounts

Payment terms can make a discount available when an eligible vendor bill is paid by its discount date. Create a vendor payment and select the vendor.

Before you begin

You need an open vendor bill with an available terms discount and a configured purchase discount account. See Configure payables discounts and Create a vendor bill.

Review a bill’s terms discount

On the vendor bill, review the terms, due date, term discount date, and available term discount. QuickStart calculates these values from the selected payment terms and the bill date.

The terms discount is separate from item-level or total transaction discounts. Transaction discount behavior is controlled by the Payables discount preference.

Apply the available discount

  1. Create a vendor payment and select the vendor.

  2. Under Applied transactions, select an eligible vendor bill.

  3. Review Discount available, Discount expiration date, and Discount applied.

  4. Adjust the applied amounts when needed and complete the payment.

The discount applied cannot exceed the discount available for the bill. After the discount date, the payment terms discount is no longer available. The purchase discount account must be configured for a discount to post.

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