As an incentive to encourage early payment, you can offer customers early payment terms, also known as settlement discounts.

To do this, you create early payment terms that you offer to customers. You set an early payment percentage discount, and you set a time-scale within which the discount applies.

You can base the time-scale on several days from the invoice date, or from the last day of the period.

The system prints the settlement amount and date on each invoice.


  • Select Edit… Terms… Early Payment Terms.  You can create up to 32 terms.
Discount Percentage:
Enter the discount on offer for early payment.
Enter the maximum number of days within which the Customers must pay you or you must pay Suppliers to qualify for the discount.
· From Date of Invoice: Expect a payment x days after the date of Invoice
· From Last Day of Period: Expect payment x days after the last day of the current period. Mixture of day-based and monthly terms

Applying early payment terms is the same way as Normal Payment Terms


This needs to be activated for Sage Pastel Accounting to allocate early payments discount Suppliers offer you.

  • Select Process… Cash book… Process Cash book
  • Select Settings at the bottom of the screen
  • Ensure Allocate Settlement Discount and Invoke Open Item is selected

To use this, feature the Supplier must

  • Have an early payment term.
  • When you pay the Supplier, do not enter an amount or discount.
  • Invoke the Match Open Item screen.
  • The system calculates any discount automatically and displays it.
  • When you leave the Open Item screen, the system updates the payments batch line with the correct amounts.

Note that the system will not calculate automatic discounts under the following circumstances.

  • The settlement date is later than the transaction date.
  • A transaction has one or more allocations, for example a partial payment, a credit, or a debit.
  • You have not set any payment terms for the Supplier.
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