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How to manage untaken fast-pay discounts

February 2, 2024
February 2, 2024


Q. An account with discounted payment terms pays within those terms but does not take the discount. Do you show the earned discount as a credit or cash on account? Advise the account to take the credit against an upcoming payment? A. (Answered by the IOFM Advisory Panel) ----- We do not give discounts. ----- Since the receivable is in customer ledger minus the discount, once the cash application has been performed, there will be an unapplied balance remaining on the receipt itself. It’s cleaner…

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