Xero are currently implementing a early / prompt payment discount as a feature however until this time we have created a free template you can use via the custom branding themes. This does not help with the accounting it instead provides an invoice that clearly shows the discounted amounts if paid within 7 days.
You can download the template here.
Here are a few points to go with the template:
- This was initially built for a contractor so only works with 1 line invoices.
- It is currently setup for the UK however you can easilly switch currency.
- It is currently set to 7 days early payment discount however you can change this to whatever is needed.
- The prompt / early discount rate is currently 4.5%. You can change this by right clicking the £0.00 items -> selecting edit field -> selecting formula then editing the 0.045 part of the formula with whatever rate you need. This will need completing for all the discount related fields.
- VAT is 20% hard coded also so change this where relevant.
Use this as a basis to build your invoice out. Create a custom branding theme and then upload this invoice to the branding theme then test the branding theme on an invoice making changes and reuploading until you are happy. Note that previewing and invoice does not work with custom branding themes so you will have to download a pdf each time you test.