# General Business Category > Accounting Forum >  Pastell early payment discount

## darrenc

Hi all

I have recently buckled by allowing a 2.5% settlement discount to encourage on time payments by customers. 
When capturing cash book receipts that clearly qualify for the discount, no discount is taken into account.
Please assist with advice on this issue. Is it a setup or processing issue.
Customer file is setup with early payment terms, those terms too are set up as 30 days from end of period.

Any help will be much appreciated
Thanks
Darren

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## Dissel

Hi Darren
There is a discount column in your cashbook receipts processing window. If you can't see it, click on "batch...restore columns"  and it will appear. When capturing you will have to calculate the discount manually and enter it. Make sure discount is set up for vat if you are vat registered.

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## Neville Bailey

Dissel is 100% correct.

The reason for the early terms discount field in the customer masterfile is merely to allow you to add the discount amount and due date on your invoices, using the Forms Designer. It does not facilitate the discount calculation when capturing cashbook receipts.

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## darrenc

> Dissel is 100% correct.
> 
> The reason for the early terms discount field in the customer masterfile is merely to allow you to add the discount amount and due date on your invoices, using the Forms Designer. It does not facilitate the discount calculation when capturing cashbook receipts.


Thanks for that.
Does this mean that I must calculate and pass credit for each receipt, per invoice,  as I'm using open item.

Thanks again
Darren

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## Dissel

No, calculate the discount on each receipt and enter that figure in the discount column. The discount will be included in the amount which pastel allocates the receipt, in your case, the oldest invoices. If the receipt is for invoices that don't qualify for discount you merely leave them out of the discount calculation. Unfortunately, with the open item method you lose the ability to allocate to each invoice and your aging can suffer.

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