The discount for early payment of a purchase is based on the original purchase amount of the PO.

• A Purchase Order for $100.00 is entered with a date of 9/10/2023. Terms allow for a 2% discount if paid within 10 days (9/20/2023).
• A $10.00 Debit memo is applied to the PO, leaving a $90.00 total due on the PO.
• A vendor payment is made on 9/15/2023, which allows you to take the discount for early payment. AccountEdge will calculate the 2% discount as $2.00, based on the original $100.00 amount of the PO.