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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Payment discounts
Small and medium business | Business Central, N...
Suggested Answer

Payment discounts

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Posted on by DebbieG 544
Hi, I cannot get my head around the early payment discounts.
 
see below entry. Invoice total value is  30,140 with a possible discount of 1507
 
If the customer is Part paying this invoice and it is within the dates for early discount, BC doesnt seem to take up the discount - see below
 
 
It only seems to apply the discount if the invoice is paid in full? Surely that cannot be right? I would have thought it would proportion the discount.
 
Can anyone advise?
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Dynamics 365 Business Central
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  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 4,817 Super User 2026 Season 1 on at
    No, invoice counts as paid only when paid in full, and only then the payment discount is applied. It is all or nothing type of situation. 

    If You want partial payments and discounts, then You need to ask for partial Invoices.
  • DebbieG Profile Picture
    DebbieG 544 on at
    How do people deal with discounts then? Does this mean the client would need to do the discount entries separately?
     
    As an example, Customer pays $2000 (which may be partial and takes $300 discount, how can you process this entry in one step?
  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 4,817 Super User 2026 Season 1 on at
    It depends what the discount is for.
    If it is Payment Discount (meaning as Early payment discount - that you get discount if you pay the invoice fully before the due date (or within first 10 days)) then this is used. You mark the date and percentage until this discount is valid.
    Theres also payment tolerances, for example if on 10 000 invoice only 9995 is paid - that this Invoice could be counted as fully paid or not, but it really depends on Your agreement with Vendor/Supplier.

    If it is Item or Invoice discounts - then they are set up differently. If You open Vendor card, You will find option of Invoice Discounts and Line Discounts that You can set up.
    Invoice Discounts are used for volume discounts - like when invoice total is larger than X, then a discount is applied. This can be several levels of course.
    Line Discounts are based on items that You buy and their quantities. Usually such as seasonal campaigns or special offers or buy 1 get 1 free etc.
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 2,647 Super User 2026 Season 1 on at
    Hello,
     
    If you are posting from sales order, then you can post partial based on the customer's agreed payment amount so that you can utilize the payment discount function.
     
    Otherwise, you can simply add a new line into the sales invoice with -300 to manually deduct it and posting it to the payment discount GL.
  • DebbieG Profile Picture
    DebbieG 544 on at
    I think the issue is, the customer is very flexible with their discounts. Some is early payment, and sometimes they just give the customer a discount. My main issue here really is, how can I allow a discount on an invoice that is partially paid (irrespective it was an early discount or Not).
     
    Would this mean that the customer would need to process the payment, and then a separate line for Discount and match it to these invoices that now shows partially paid. Sound very messy.
     
    How can I apply a discount to a payment that is NOT linked to early dicount then.
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 2,647 Super User 2026 Season 1 on at
    Hello,
     
    There is no straightforward method and there are many scenarios to fill in.
     
    For a start, if the customer know exactly how much discount is given before posting the invoice and they are paying partial, then you can use the invoice discount feature.
     
    If discount amount is only given after posting the invoice and they are paying partial, then you can either create a manual journal or create a sales credit memo to act as the discount.
     
    when posting receipt,
    Cr Customer
    Dr Bank
    Cr Payment Discount > you will need to insert this line
  • Suggested answer
    Mansi Soni Profile Picture
    Mansi Soni 8,951 Super User 2026 Season 1 on at
    Hello,

    The payment discount only applies when the invoice is paid in full because if the remaining balance is not settled on time or not paid at all, the customer would no longer be eligible for the discount. This ensures the discount is granted only when the full payment is made within the agreed terms.

    Hope the following resources will help you as well!

    https://community.dynamics.com/blogs/post/?postid=9216b0ca-66fe-ee11-a73d-000d3ae4020f
    https://learn.microsoft.com/en-us/dynamics365/business-central/finance-payment-terms

    Regards,
    Mansi Soni
     
  • Gerardo Rentería García Profile Picture
    Gerardo Rentería Ga... 25,555 Most Valuable Professional on at

    Hi, good day
    I hope this can help you, and give you some hints.

    Mastering Discounts in Business Central in Just 30 Minutes! - Business Central Musings

    Best Regards
    Gerardo

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 99,084 Super User 2026 Season 1 on at
    As far as I know, this can only be done through customization. You can try to find third-party solutions on AppSource or discuss specific needs with local partners.
     
    Thanks
    ZHU

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