Settlement Discounts in Cin7 Core and Xero: A Practical Walkthrough

A walkthrough of how to handle a settlement discount when a customer pays a group of invoices short of the full amount, and how to get that difference posted correctly in Xero. We cover: Ticking off the invoices in bank reconciliation and finding the shortfall Adding an adjustment line for the 2.5% discount, including where the payee differs from the customer Choosing an account to post the difference to, and what that does to your P&L Checking the result on the bank statement line and the profit and loss report The same approach works on the purchasing side. Useful if you take bulk payments, run buying group arrangements, or offer early settlement terms and keep ending up with unmatched amounts in the bank feed. Tax treatment of settlement discounts varies, and whether the discount sits as an expense, a negative sales line or cost of goods sold is a decision for your accountant. Check with your advisor before you set the account up. Waypoint is a Cin7 Core implementation partner. We help product businesses get set up properly and stay that way. Website: https://wearewaypoint.com #Cin7Core #Xero #SettlementDiscounts #Reconciliation #InventoryManagement