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.
Hi everyone, we thoroughly appreciate everyone’s interest and support for enabling the ability to apply a prompt payment discount to invoices.
We understand how a direct prompt payment discount feature would improve the efficiency and automate manual efforts currently involved for you all here, but would like to be transparent that this isn’t something we’ve been able to roadmap atm.
Right now, one way to indicate that your business accepts or will apply a discount for prompt payment would be to write this into the invoice payment terms. When acted on there are a few ways you could consider recording this in Xero, such as;
- Edit the invoice to apply a discount directly
- Edit the invoice to add a negative line that directly draws down the total amount of the invoice
- Apply a credit to the invoice for the portion of the discount
We'd recommend connecting with your Xero advisor on how they'd recommend recording this in your org.
Alternatively, there are connected invoicing apps that you can explore through our Xero App store.
We'll continue to track support through this idea, and our product teams will continue to consider this in future planning, so if there’s any updates we’ll share here. Thanks
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Brian Kenny
commented
@Riaan Badenhorst I could not agree with you more. Is this accounts software now being designed by tech people rather than accountants and business feedback? When I read in today's email "... we've shipped more than 300 product updates..." it is even more convincing that the people doing this are not very professional. Shipped 300 updates where? Is the strategy to squeeze as much money out of clients as possible? I am convinced the answer to each of these two questions is a resounding "YES".
Today Xero provided further proof by adding insult to injury with their usual 1st July increase and claiming 300 product updates, and 2x faster payment from customers. Not in our case! XERO want to milk more money from clients by getting them to use their payments platform - NO THANKS!!
I am fed up of their advertisement for their payment platform appearing every time a debtor invoice is generated. GREED is an understatement. XERO are on the same path that Boeing took, shareholders only, we are not interested in stakeholders or what they have to say. Roll-on AI accounting software, generating bespoke software to suit a business's individual needs. In the meantime we will have to make do with the ridiculous "300 product updates" including "Ridiculous JAX" that XERO seems not to trust because they want indemnification from any mistakes, but they still want our money to pay for it.
The email below clearly states "Businesses on Xero in Australia are now saving more than 22 hours a month on bank reconciliation," My comment is very simple "Prove it". It may be the case with large firms, I know 16 that use Xero and I shall undertake a study to investigate these claims.
The next likely steps to engage with extortion from loyal clients this September, is that they will try to force us onto their new suite of levels and we will have to move up a level, and pay more to keep the features we actually use. Xero are very good at analysing the features businesses use and then separating them into various "new" levels. Correspondence received today equates to a 7% increase, well above inflation.
email as received 04.05.2026 They don't have the decency to properly sign it with a persons name and position.
"Hi Brian,
We wanted to share information about an increase in the price of your plan.
From 1 July 2026, the price of your Comprehensive subscription will increase to $107 per month.
No action is needed on your part. You can review your plan or explore options anytime in your Xero account.Over the past year, we've shipped more than 300 product updates. Businesses on Xero in Australia are now saving more than 22 hours a month on bank reconciliation, getting paid 2x faster with new invoicing tools and are making more informed decisions with upgraded reporting and analytics. See here for our latest product updates.
If you have a question or need support, get in touch with us.
Thank you for building your business with Xero.
Kind regards,
The Xero team" -
Riaan Badenhorst
commented
@Brian Kenny. I share your sentiments. When clients tell me they thinking of trying Xero, I just show them what Xero does not advertise, what it can't or refuse to do. You know, the basic accounting stuff, like this feature of applying discount we have been asking for 15 odd years. Other stuff like 30, 60 day on statements, deposits, and sub accounts. Well at least without paying another subscription upon the current one. Then clients quickly change their mind. Sad to see how an accountant friendly software company changed into a corporate greed company.
The applications in the App Store shows that the feature can be done. It's just a question of "do we want to". Of course not, then they will lose the additional revenue from the App Store.
The work arounds is also evident that they really have disconnected from real accountants. Just create additional work and hours spend, like we have a lot of time on our hands.
The 6 months free is also how to get clients hooked then after the client realise the shortfalls, it already too late. Great marketing strategy by Xero, must give them that.
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Brian Kenny
commented
That is a very onerous way to do it.
"...this isn’t something we’ve been able to roadmap atm." Really?
Why was software that we were using 30 years ago able to do this, while Xero in 2026 cannot even contemplate how to develop it?Doubtless the focus is on trying to get your customers to sign up for utilising the Xero payments system - Simple answer is "NO", and I would really appreciate if we did not have to look at your advertisement every time we generate an invoice. We pay for this, I do not want Xero advertisements when using the software - Thank you!
We are also very likely coming to the point in the year where we will all suffer an increase in our monthly fees for no reason whatsoever, other than to further develop "Useless Jax", which we do not need!
Why are new business customers being offered 6 months free Xero if they sign-up through a particular bank? Why are faithful Xero customers being penalised for being faithful? How about 6 months no fees for customers using Xero in excess of 10 years? Is it time to look elsewhere??
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Benjamin Lee
commented
Lol - you guys got plenty of time to muck around with AI and changing visuals on dashboards though rather than implement a core feature.
Yea, I'll just manually edit the hundreds of invoices we send out a month *eye roll*
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Riaan Badenhorst
commented
@Peter Humphrey. It's not really that the product is good, it about the cost of moving. We bit the bullet and moved our entire 58 clients of Xero, and only 3 remained. Small numbers for Xero, but I could not handle the ignorance from Xero any longer. This is one of many standard features not included with Xero and have to pay third party apps for standard features.
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Peter Humphrey
commented
And the longer they leave it, the more funny it becomes. Unfortunately the product is good enough to stay, and they know that. But clearly they don't care about negative vibes.
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Martin Danger
commented
We have now reached 13 years!!!
From and including: Tuesday, 22 January 2013
To, but not including Thursday, 23 April 2026
Result: 4839 daysIt is 4839 days from the start date to the end date, but not including the end date.
Or 13 years, 3 months, 1 day excluding the end date.
Or 159 months, 1 day excluding the end date. -
Andrew O'Brien
commented
Is this a joke? The idea was added 12 years ago, has heaps of comments and votes, yet ignored by Xero development team?
No comments, no updates, no "this isn't possible without significant effort", just silence. -
Jean Chidiac
commented
Can Xero create a function on an invoice sent to a customer via a link that, depending on when they make payment, either gives them a small percentage discount or charges them slightly more due to being late?
Scenario #1: The customer's payment terms are 30 NET. If the customer pays on the 39th day, the system automatically updates the pricing and adds a late fee. The margins are pre-built in the back end by the seller and assigned individually to their clients.
This way, clients are encouraged to pay on time or face paying more for the same goods. Now with Xero to Xero integration between suppliers and customers, the updates can be done seamlessly. -
Peter Humphrey
commented
This channel has become my daily source of laughter! Don't get me wrong, I, too, desperately want this feature. Buy after YEARS of XERO response, I'm not sure that the XERO team even gives a [insert your preferred word here].
Happy Friday!
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Sherri Mackey
commented
1%10 Net 30, 2% 10 Net 30 are normal discounts that would be helpful if auto-calculated vs manually adding on each bill.
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daniel wollen
commented
Please add a prompt payment discount facility , I need to have a discount of 10% if paid within 7 days of statement for a particular customer, that then disappeares after those 7 days is up.
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Michael Pilkington
commented
I want to offer a discount if someone pays by bank transfer rather than credit card as credit card fees are getting very expensive.
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Lloyd Benson
commented
This seems like a no brainer, fairly easy to develop and encourages best business practice. XERO let's get it done!
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Nick Bennett
commented
Ah, I've been ushered into this little corner of Xero that no one ever checks.
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Diane van Rensburg
commented
Setting up settlement discounts on Accounts Payables without having to create a credit note.
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Gabi Fitzgerald
commented
Seems like this was a waste of time logging in here if this has been 13 years
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Riaan Badenhorst
commented
Wow, 13 years already. Talking about slow
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Tee Carter
commented
Can't believe this still hasn't been implemented... Oh wait, that's right these Xero devs don't do anything.
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Arthur Foote
commented
We have several customer would like us to implement a 2% 10 net 30 payment policy. We have always been able to do this in other programs. Seems like a fairly common request.