Automatic Discount Application

Audience: Accounting Managers and Administrators

Accounting Systems: NetSuite, QuickBooks Desktop, Great Plains, and MineralTree File Connect

Summary: This article provides an overview of automatic discounts and how they are calculated, configured, and applied in MineralTree.

In this article:

• Configuring global discounts in MineralTree
• Configuring vendor discounts in MineralTree
• How Discounts Are Calculated 
• How Discounts Are Applied
• Managing expired discounts

The Automatic Application of Discounts feature makes it easier to take advantage of early payment discounts. Discounts can be auto‑applied to payments made within the discount window, eliminating the need to manually adjust payment amounts before submission.

Configuring Global Discounts 

To enable this feature as a company-level default, navigate to Settings > Manage Company Settings and click on the Settings tab. Only Administrators can enable payment discounts to be auto-applied.

Configuring Vendor Discounts

You can override the company-level default per vendor. To do this, go to the Vendor Details page under the Payment Preferences section. By default, the vendor is set to use the company default, but you can choose whether discounts should always or never be automatically applied for that vendor.

How Discounts Are Calculated

MineralTree calculates discount information (date and amount) from standard discount terms retrieved from the accounting system. For the example shown below, if you have a discount term of 1% 10 Net 30, the discount information will be calculated as follows:

Discount Date = Invoice Date + 10 days

Discount Amount = 1% of Invoice Amount

All invoices with applicable discounts will be indicated on the Invoices tab by a percentage icon. Upon hovering over the icon, you can see the discount terms and calculated date and amount.

How Discounts Are Applied

Discounts are automatically applied if the payment date is on or before the discount date. You will see the discount applied upon sending the invoice into the payment queue. Keep in mind that the payment date is set to the current date by default. If you change the payment date to after the discount date, you will see a warning icon indicating that the payment is outside of the discount terms and prompting you to manually unapply the discount. To manually unapply (or apply) a discount to a payment in the queue, click the Create button to the right of the payment amount and select "Unapply Discount" or "Apply Discount."

The Auto-Apply Discounts feature can be used in conjunction with the Auto-Scheduling Payments feature. If a payment is scheduled for submission on or before the discount date, the discount will be automatically applied and the payment authorizer will see the discounted amount in their approval queue.

If a discount has been applied to a payment, the payment approval request will contain information about the discount amount and the discount date.

Managing Expired Discounts

Under the Payment Authorizer view, the discount icon will appear for all payments to which discounts have been applied. If the discount has expired while awaiting approval, the warning icon will appear — the discount will not be automatically removed, but you will be notified that it has expired.

In the Payment Details page, there is an option for the payment authorizer to manually unapply or apply a discount by checking the ‘Apply Discounts’ box.

Additionally, in the History Log of the Payment Details page, it is recorded whether the discount was automatically or manually applied. Any discounts applied will be stated on the remittance sent to vendors. 

• Phone: 855‑672‑9669
• Email: mtsupport@mineraltree.com