Set up discounts and penalties—Accounts Receivable

Select an offset account

Select an offset account for discounts and penalties in the Configure Accounts Receivable page. If you use account labels, also create an account label that refers to the same offset account.

Add an AR term with a discount or penalty

Subscription Accounts Receivable
Regional availability

All regions
User type Business
Permissions AR terms: List, View, Add, Edit
Next step

Apply penalties—Accounts Receivable

  1. Go to Accounts Receivable > Setup > More, and select Add (circle) next to Terms.

    See AR terms for detailed information on adding a term.

  2. In the Discounts section, enter the terms of the discount.

    See the field descriptions for more information on the discount fields.

  3. In the Penalties section, enter the terms of the penalty.

    See the field descriptions for more information on the penalty fields.

  4. Select Save.

AR Terms are a master object. Master objects can either be accessible to all entities or exclusive to a specific entity. We recommend that you create customer terms at the top level to be shared across all the entities. Creating terms within an entity restricts then to that entity. If you do create terms in entities, use a naming convention that differentiates them at the top level.

After you set up discounts, you can apply discounts when you receive the payment.

After you set up penalties, you can apply penalties to a past due AR sales invoice.

Assign an AR term to a customer

When you assign a term to a customer, it becomes the default term whenever you record transactions, such as AR sales invoices, related to that customer.

Subscription Accounts Receivable
User type Business
Permissions Customers: List, View, Edit

  1. Go to Accounts Receivable > All > Customers.

  2. Find the customer for whom you want to add a term.
  3. Select More actions > Edit at the end of the row..
  4. On the Additional information tab, find Invoicing details.

    Term is the first item.

  5. Use the dropdown list to select the customer's Term.
  6. Select Save.

  1. Go to Accounts Receivable > All > Customers.

  2. Find the customer for whom you want to add a term.
  3. Select Edit next to the Customer ID.
  4. On the Additional information tab, find Invoicing details.

    Term is the first item.

  5. Use the dropdown list to select the customer's Term.
  6. Select Save.