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Best practices: Discounted payment terms

OVERVIEW does not currently support discounted payment terms. However, there are a couple of best practices in the workflow which will allow you to take advantage of vendor discounts.

What does your workflow look like?

  • If you enter bills and then pay them:
    • When you enter the bill, record the bill amount for the net amount after the discount.
    • Recognize the discount taken as a negative line item at the bill.
  • If you enter the bill, and someone else pays it later:
    • When you enter the bill, add a note alerting the payer about the discount terms.
    • At the time of paying, the payer (who must have "Manage Bills" permissions, in this case, decides if the bill is eligible for the discount, and edits the bill accordingly.
  • If you need to track discount amounts in a separate GL account:
    • Edit the total amount.
    • Add a line item posting to the appropriate account, and enter the discount as a negative amount.