Invoice - Prompt Payment / Settlement Discount
To apply a prompt payment discount/settlement discount to an Accounts Receivable invoice from the match items screen in the Bank Reconciliation.
Purpose: So users can offer early discounts to vendors/suppliers without needing to do manual credit notes or editing the invoices.

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Brian Kenny commented
A customer pays $1,000.00 to settle a $1,000.50 invoice. Button please to allow the $0.50 discount. Or, allowing a customer 2% discount for payment within 7 days, button with discount % rate please. Thank you :)
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Richard Penny commented
Cash flow is such a challenge and having the ability to add a discount for payment on time is critical. Its already used in many applications, like Speeding fines, Car Registration, Council Rates so we need to have this option added ASAP.
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Thomas Liu commented
PLEASE! Essential for every business these days. Very helpful to cash flow.
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Grant Smith commented
How is this not already done. Early payment discounts generate sales! Get this done ASAP, please
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Tomas Finneran commented
This is also vital for customer statements, and ideally where the discount could be calculated and displayed automatically e.g.
"Pay the balance of your fees before 31st March 2023 and save [5% of their balance shown here in € ]"
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Riaan Badenhorst commented
@Tomas Finneran. I honestly have given up. Don't need frustration in my life. I have seen less voted and less importants features added. Cannot say how they evaluate a request. My clients that is on Xero (pay for Xero themselves) have left at Xero. Clients I pay for, I have moved to something more suitable. I do not recommend may clients Xero any longer, but If they want Xero, I do assist.
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Tomas Finneran commented
This feature is vital, find it strange that Xero would not want to include it. Please add as soon as possible.
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Christa Boren commented
@PamDyer
Your timing here is perfect. This is becoming critical for us and Xero seems to have no intention of ever implementing this change. I was just going to ask which other services have this feature as we have no hope of Xero helping at this point. Will start looking at Sage and Quickbooks. -
Pam Dyer commented
We are new to Xero and we too offer early payment discounts. So surprised to see this basic feature isn't standard in Xero. Both QuickBooks and Sage have this feature. Entering a CRN for each discount is extremely time consuming. Please add this feature asap!
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Riaan Badenhorst commented
@Kevin Burrows. There is a better chance for peace in the Middle-East before Xero will listen to, what should be industry standard feature.
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kevin Burrows commented
Please instigate this feature, it is essential to our business.
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Thomas Unwin commented
Yes spot on Riaan - there's one issue i saw a couple of months ago which only had 2 votes at the time and was already "Under Review" with a Xero employee called Kelly having replied.
The issue was to "add more gender options". Not that i'm denigrating the specific request, but there were only 2 votes on it when i first saw it and it was already under review with a response!!
Meanwhile, as per my original comment below here - THIS issue which is pretty vital, speaks directly to Xero's "WHY"/ stated purpose of existing and that, when you add together with other postings for basically the same thing, has been viewed thousands of time with no review.
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Riaan Badenhorst commented
Yes, Alex with all these comments (and other features that should be considered standard), I do not know as well? Lessor voted request are adhered too. To be brutally honest, its just feels like Xero went from a real peoples company (what I loved from Xero) to a very commercialised, we do what we like business, same as Sage. Maybe money does change one?
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Alex Watt commented
Absolutely VITAL for our business. Not sure what to do without it to be honest.
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Michael Chou commented
Xero please can you implement this ASAP
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Riaan Badenhorst commented
This suggestion was requested already https://central.xero.com/s/question/0D51N00004GHabYSAT/can-you-apply-an-early-payment-discount-on-invoices-for-customers. It has over 3000 views and is closed now. Still being ignored by Xero. WOW!!. They forget that accountants and advisors has a strong influence on what their customers must use. Maybe 3 mil subscribers, mostly encouraged by advisors than advertising.
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Richard Fletcher commented
Has there been any movement on this idea, Transport and Main Roads Queensland have this in place for registration renewals. i,e. if paid before xx/month/year the price is $xx, if paid after then full invoiced price. if a gov't dept. has it it's not that revolutionary.
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Christa Boren commented
This feature would be so helpful but I won't hold my breath. It was first requested in 2013 and there are still people asking for it every month, I found this after looking at another thread on the same topic. I don't think that Xero will ever listen. Like so much with Xero it mainly works and then it doesn't.
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Sharon Bolderson commented
I've had a request from a client for this - it would be a helpful feature.
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Roy Brown commented
I have a new client who needs this option when trading with WH Smiths and Holland and Barrat