Overview

Settlement discounts allow you to specify a percentage discount off an invoice’s value that applies if a customer pays that invoice in a set period.

If a settlement discount isn’t being calculated automatically when receipting an invoice, then:

• A settlement discount may not be setup for that customer.
• The settlement discount terms may not be configured correctly.
• Settlement discounts may be disabled in your system preferences.
• Settlement discounts may be disabled on that sales invoice.

No settlement discount for the customer

Settlement discounts are controlled by the Settlement discount options on the Customers form,

If no settlement discount terms have been configured for the Customer code on the Sales invoice, no discount will be calculated regardless of when the invoice is paid.

Incorrect settlement discount terms

If the Number and Unit settings for a customer's settlement discount terms are configured incorrectly, a receipt that should be eligible for a settlement discount may not calculate one.

This can commonly occur when the settlement discount is accidentally set to:

• Days from Inv. or Months from Inv. instead of Days from EOM or Months from EOM.
• Days from EOM or Days from Inv. Instead of Months from EOM or Months from Inv.

Settlement discounts are disabled

The Support customer settlement discounts system preference must be enabled before settlement discounts can be used. If this preference is disabled, settlement discounts will not be calculated.

Invoice doesn’t allow settlement discounts

Each Sales invoice includes an Allow settlement discount option. If this option is not selected, the invoice will not be eligible for a settlement discount, even if the customer has valid settlement discount terms configured.

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Last edit: 25/09/2026