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@Kirstine Selman, you are better off going back to your previous system if this is really important to you. This has been an issue since forever.

In hindsight we all should do adequate testing before changing systems.

really didn't realise that settlment discount was an issue with Xero - this is a huge pain already and we only switched from 1st April. SORT IT OUT!

This has been an outstanding request for quite awhile. Is Xero looking at it or will it never happen? Why do they fix what isn't broken and don't get on with what is requested?

this is a must have

This a response I recently received from Xero this may help people

One method you could use for settlement discounts for multiple bills is:

Set up an account for the settlement discount. If you'd like to keep them separate, you can set up multiple for each supplier that offers this.
During reconciliation, use Find & Match to search for the bills.
To account for the difference between subtotal and money spent, click Adjustments, select Bank fee and then allocate the difference to the settlement discount chart of account account created in point number 1. You could set an appropriate VAT rate for it at this time.
Click Reconcile.

The bills will be fully marked as paid and the discounts will show in reporting. Alternatively, you could also:

Raise a credit note for the amount of the discount instead and apply this.
Edit the bill and use the discount field to lessen the amount due on the bill.

This would save hours of admin time each month. Please add this feature!

We offer prompt payment and manually have to manage this, which is really cumbersome. The discount is critical for us and this is a huge gap in the Xero functionality.

Move back or move to MYOB, people.

Really important to our customers since we have just moved to xero and didnt realise this was a problem

We have a great deal of invoices that we receive early payment on. This would be absolutly critical to our business

This would be incredibly helpful.

This could also be helpful when you run a tax report based on invoices with cash discount upon payment.
I.e. if you post the cash discount as a payment and don't manually adjust the report you'll pay tax on the gross amount.

I don't use this feature much but I think it would be incredibly useful

This would be so helpful

Having switched from Myob quite a few years ago we have been paying our bookkeeper to manually create and apply settlement discounts to just about every single invoice we pay our suppliers to take advantage of their early payment discounts. Myob has had this feature for years, automatic settlement discounts applied to each supplier and invoice if within the 7-14 day terms. Seems like an easy win for xero to implement, will save us time and money!

This would be incfredibly useful.

Agree. This option needs to be added to the Invoicing templates.

A pay on time discount could save us hours of chasing clients for payment and improve cashflow! Very important!

This is a simple thing that has been available in accounting software since the year dot. It is a time saving tool that also assists to ensure a lesser chance of mistakes being made.

Many of our clients of "Datagate Telecom Billing" around the world (US, UK, AU, NZ) are asking for this feature, but it really needs to be part of the Xero accounting system rather than the (Datagate) telecom billing system. We would be happy to provide further information and context.