2.2 How to configure cash discount

1. 1. Click on Accounting

   

Odoo

1. 2. Click on Configuration

   

2. 3. Click on Settings

   

3. 4. Search "discount"

   

4. 5. By default, accounts for Cash Discount Gain & Cash Discount Loss is created & set. Amend the accounts if necessary.

   

5. 6. Click on Configuration

   

6. 7. Click on Payment Terms

   

7. 8. Select relevant Payment terms. For example, select 2/7 Net 30

   

8. 9. Check Early Discount

   

9. 10. Fill in desired discount percent

   

10. 11. Fill in desired days for discount to apply

    

11. 12. Select "On early payment" for Reduced tax if it applies. Otherwise set to Never

    

12. 13. Click on Save manually

    

Example of Invoice with early discount

1. 14. Click on Customers

   

2. 15. Click on Invoices

   

3. 16. Create a new Invoice

   

4. 17. Select relevant payment terms with cash discount. For example, 2/7 Net 30

   

5. 18. Click on Confirm

   

6. 19. Click on Preview

   

7. 20. Payment terms: 30 Days, 2% Early Payment Discount under 7 days will be shown in the invoice

   

8. 21. Description of amount due if paid early is included

   

9. 22. Click on Pay Now

   

10. 23. Amount to be paid is discounted. Select payment method

    

11. 24. Click on Pay

    

12. 25. Once paid, go back to the invoice & click on Payments

    

13. 26. Payment recorded is RM 140.14 & to be reconciled at bank