Settlement Discounts let you give clients a discount if their account is paid on or before a predetermined due date. The discount appears on the remittance advice on the last page of your account.
RxWorks calculates the Settlement Discount on the current balance only.
Most businesses allow settlement discount on current balance even if there is some overdue balance. However, RxWorks does have an option to specify there must be no overdue balance or it must be below a set value.
If you do not want to offer settlement discounts, make sure all of the fields are zero for each account type.
To configure Settlement Discounts, select each account type and set each of the fields (described in the next article index).
You can create new account types through Options & Setup > Client > “Client Accounting Information”.
The Settlement Discount Window Fields
Select each Account Type then set up the other parameters. Changes will be saved as they are made and there is no need to click OK after each Account Type is set up. In fact Cancel does not function. To reverse changes they must be undone one by one.
Discount Rate To Apply
The percentage of the current balance you will offer as the settlement discount.
Number Of Days From Account Date
The program will use this field to calculate and then print the Settlement Discount cutoff date on the account statement.
Only Apply If Overdue Balance >=
It is common business practice to allow settlement discount on current balance even if there is an overdue balance. If this is your wish, enter a very large value into this field such as 999999.99.
To prevent settlement discount on current balance if there is any overdue balance, set the field to 0 (or perhaps a very low amount to allow for accounting errors).
Text To Print On Statement To Explain Discount
This field lets you to explain how your Settlement Discount works. It only appears when a Settlement Discount is applicable.
Remember, your clients will try to game your settlement discount policy. There are two ways to react to this. One is to accept it will happen and give in. The other is to stick, rigidly to limits. There are arguments in favor of each position and you should adopt that which you feel most comfortable with.
In any case, make sure you say what you mean when you write this text. The example above has several features that you might want to incorporate in yours. Keep in mind that, even if you adopt a laissez-faire approach, you will still have to specify your limits. Experience has shown that it is likely to be the very client you want to limit who will try to game any limits you have put in place.