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.
AdminXero Team
(Admin, Xero)
shared this idea
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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Frazer Bird
commented
This feature would be a great addition to Xero and a feature that everyone seems to be crying for!!
We have looked at Paidnice and while that would solve our concern, we cannot warrant the monthly fee as we do not invoice that frequently being a smaller business.
Our Xero subscriptions goes up constantly, yet no new features to prove its worth!
Please Xero, can we have this feature added. Surely you can see it’s a feature worthwhile - it’s been requested for 12 years!!!
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Sandy Schaare
commented
We are trying Paidnice. It gives us weekly updates. Group flexibility ie different channels for different customers...and does everything we needed to offer prompt payment solutions.
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Peter Humphrey
commented
Lol - it is clear that Xero ignores this chat.
The feature would be excellent. Maybe someone should start the chat on LinkedIn; it may garner some attention if we move the conversation there. Otherwise, the product overall is good.
It would be nice if they had a product team that engaged users from time to time. I don't think they have account managers to check in with customers. Sad, if I treated my customers like this, I would not have any!
I'll check back here in another 5 years!
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Mark Kedian
commented
Has this not been implemented yet?
We are just busy moving from Pastel to Xero. So far the support has been less than adequate. So much so that I am contemplating reversing my decision.
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Sandy Schaare
commented
Has this been solved?
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Steven Porter
commented
I'd like very much to trial early payment discounts with my clients, but despite using some pretty sophisticated accounting software - by the way, that's your product Xero - I can't add this simple thing to an invoice. Wow!
If this functionality hasn't been implemented in 12 years, there must be a reason.
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Martin Danger
commented
We have now reached 12 years!!!
From and including: Tuesday, 22 January 2013
To, but not including Wednesday, 29 January 2025
Result:
4390 days
12 years, 7 days excluding the end date.
144 months, 7 days excluding the end date. -
Brigid ONeill
commented
Xero you are bleeding customers due to increased fees. That you aren’t prioritising upgrades that are standard features for your competitors is shocking. Provide a timetable for beta and full deployment schedule for each idea so that we can actually see it working its way through the apps dev pipeline!!!
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Admin PTS
commented
This is a critical feature. Adding it would save a lot of administration time, improve customer service and reduce lost income
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David Vaassen
commented
This is a pretty basic function for an accounting/billing system.
It's high-time Xero pulled finger and added the functionality.
C'mon Xero -are you listening?
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Rebecca Hill
commented
Please add a settlement discount option in the bank reconciliation page. Over 10 years in the making!!!!!
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Martin Danger
commented
From and including: Tuesday, 22 January 2013
To, but not including Monday, 18 November 2024Result: 4318 days
Or 11 years, 9 months, 27 days excluding the end date.
Or 141 months, 27 days excluding the end date.Come on Xero, either say you aren't doing it or give us a date by which time the feature will be ready. Don't keep everyone hanging like this. It's really frustrating and quite frankly, it's an immature way of dealing with the issue.
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Pete Petrovsky
commented
This feature request has been brought up years ago... What's taking so long?
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Riaan Badenhorst
commented
@Lynda McDonagh. We have to realize that Xero will NEVER implement any of the features that accountants really need, such as this basic function expected to be available like the other accounting packages. Imaging since 2013 accountants was pleading for this feature and other important features, and nothing. They have become to important for small businesses.
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Lynda McDonagh
commented
This would be extremely helpful to have at any/all of these screens:
Add Payment; Deposit; Reconciliation -
Tyler Barker
commented
How do they leave users hanging for over 10 years?
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Jaspreet Lally
commented
A client who has just migrated from SAGE L50 has requested this feature.
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Sarah Carrie
commented
How do you not have this function at a "big" brand accounting software? For 11 years, people have been wanting this. Do you listen to your customers?
Please it's now 2024 nearly 2025 surely it can't be that hard to create! -
Ramone Robertson
commented
This would be a great feature to have, we are considering offering settlement discounts again but the process is currently quite cumbersome having to raise credit notes which is putting us off.
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Jo Dickson
commented
This is critical for our plans and how we would like to charge our customers.