Early payment discount and late payment charges



We plan to give discount to our customer if they pay early and charge additional charge as late payment fee.

We have to charge/give discount as follows -

  1. If customer pays on the same day, give 1% discount on invoice amount
  2. If customer pays 1 day after due day, 1% charge on invoice amount
  3. If customer pays 2 days after due day, 2% charge on invoice amount
  4. If customer pays after 3 days, 4% charge on invoice amount

Proposed approach
We are planning to improve the current ‘Payment Terms template’ to support configuration of additional discounts or interest by adding following child table -

Late payment charges

Payment Term Days since creation Late payment charge percentage Max charge
Discount on same day payment 0 -1.00% 0
Interest on d+1 2 1.00% 300
Interest on d+2 3 2.00% 300
Interest on d+3+ 4 3.00% 500

The above configuration will be referred at the time of creating a payment entry to calculate the discount or late payment charge. Based on it, either a debit note or credit note would be created against the customer.

Need your views on the approach.


Can be printed in invoice also (after Totals) to educate Customer about the discount.


Hi @ER_Sagar_Tiparadi
This is something we need as well! Have you started working on this?

+1 on this one…

Hi, any update on this?

any update? i need this change! it’s very usual.