Early Payment Terms Discounts (QuickBooks Online)

Recur360 allows you to automatically use Term Discounts. With Term Discounts, you can provide a discount to your customers if they fully pay off their Invoices within X number of days after the Invoice date. The discount gets applied as a Credit Memo written to QuickBooks/applied to the Invoice. Currently QuickBooks Online does not offer this feature within QuickBooks, so this allows you to add the functionality within Recur360. Early payment discounts are always applied to the invoice with those terms if the invoice is paid within the number of days from the invoice date. If an invoice qualifies for early payment discount and you do not want the discount to be applied (either in Recur360 or from the Pay Online link) you will need to edit the invoice and change the terms on the invoice to one that does not use the early payment discount.

To setup early payment discount terms you will need payment terms and an item (used on the credit memo) setup in your QuickBooks.

First setup terms in QuickBooks Online by going to the gear icon in the top right, selecting All Lists and then Terms. Note: Recur360 only syncs with "Standard" terms types, not date driven terms. 

Next setup an item to use as a line item on the credit memo Recur360 will create to apply the discount. This can be a service type item. 

Make sure to sync with Recur360 if you have added or edited any of the terms or items.

Now in Recur360 under Settings- Account configure each term that will apply a discount.

Use the Add New Term Discount button to setup the term in Recur360 

Select the Credit Memo item and modify the description (that will show on the credit memo line). You can also link the credit memo to assign a class when it creates the credit memo.

How it works

Any invoices assigned to one of the configured early payment terms will show in the collection center with a Discount Date and Discount amount. 

This will tell you the amount that will be paid by credit memo if the invoice is paid by the Discount Date. If you Process Payment from the invoice screen you will the detail of the term discount that will be applied.

Note: If you are processing payment for multiple invoices through the collection center (either using the Process Payments or Receive Manual Payments buttons) it will not show the detail of discounts that will be applied.

If your customers click the Pay Online link in an invioce those same fields will show to them. 

When the customer clicks the Continue To Payment button it shows the discount detail in the Amount to Charge section.

You can apply terms discounts to Recurring invoices also. The recurring invoice will show the credit amount that will be applied if the payment processes within the days setup in the term discount.

When that invoice is paid either through Recur360 screens or the Pay Online link Recur360 creates a credit memo for the discount amount, applies the credit and then processes payment for the remaining amount. Each invoice shows the detail of the credit memo and payment that were applied. 

The Payment/Credit History tab in the invoice shows the detail of the payment and credit memo.

The payment and credit memos then post to QuickBooks.

In the credit memo in QuickBooks we record the invoice information linked to that credit in the memo area for reporting. 

The payment link in the invoice also shows the payment and credit memo. 

In Recur360 you can also view the Credit Memo History report under Reports - Credit Memos to show any credit memos and the invoices they were applied to.