An early payment discount is a discount that you can give to your customers for paying before the invoice due date. This guidance advises on how to apply this.
Creating the Credit Note
To apply an early payment discount, go to Invoices > New Invoice > Create a new invoice for this customer > Add a line item with a negative rate (i.e. -£10). This is a credit note that you will use to settle the original invoice, be sure to leave this as unpaid.
Applying the Credit Note
Return to the original invoice, you’ll see a button appear under the payment details section labelled Apply Credit which will open a list of available credits. You simply need to Tick the credit you want to use and then press Apply.