Automated Invoice Terms Discounting in QuickBooks Online

An early payment discount is a financial solution that adapts to a company’s changing cash flow needs, supply chain demands, or the business climate. This is a reduction in an invoice balance when it’s paid before the due date. An early payment discount can be also called a cash discount or a prompt payment discount.

A common discount example is 2% 10 – net 30 meaning the buyer can deduct 2% from the invoice price if they pay by day 10.

Invoice Terms Discounting is a very common feature in QuickBooks Desktop that was never transferred to QuickBooks Online. It became a large pain point for customers moving from Desktop to Online. QuickBooks Online only offers standard terms.

Take a look at the video below and dive inside Aitheon’s pre-built app that adds discountable terms and automatically discounts invoices in QuickBooks Online.

You can see the automation app that we have built using Aitheon’s drag-and-drop builder in Creators Studio, and this is how it works:

1. This app simply gathers the payments through a search request.
2. It shows what payments were applied.
3. The app looks up the payments and the invoices that those payments were applied to.
4. It checks some rules to make sure that those invoices qualify for the discount with the terms, reads those terms, and checks that.
5. The app builds the discount to make sure that it was within the certain terms that were applied.
6. It updates those invoices.

This all happens instantly and you can see it running in real-time on the video. You also can see the QuickBooks changes at the same time, as we go through all the steps.

To start using this app does not take more than a 30-minutes online call with one of Aitheon’s representatives. It takes only three steps:

1. Setup your Aitheon Account.
2. Connect your business’s account using secure QuickBooks authorization.
3. Set up your discounting terms.

The benefits of early payment discounts for a business are:

Receive the payment sooner. Your business will get paid sooner if you offer your buyers or customers early payment discounts. That means you will have access to cash that your business can use to take care of other day-to-day operational expenses.

Reduce the risk of not being paid or receiving late payments. More likely you will not have to worry about following up over and over with your buyers or customers to receive payments.

Increase working capital and reduce gaps in cash flow. Maintain positive cash flow and increase your working capital by shortening the lag time between invoicing customers and receiving payment.

The video above gives an overview of Aitheon’s Invoice Terms Discounting application for QuickBooks Online. Want to know more about Aitheon Connector for Quickbooks Online, Desktop or POS, and other Automation solutions? Visit our page https://quickbooks.aitheon.com/ and feel free to fill out the contact form or message us at contact@aitheon.com.

With 750+ available actions and events that can be used across QuickBooks Products using the Aitheon Connector, including Desktop, POS, and Online, anything can be connected and automated with your QuickBooks setup.

Thank you for reading!