When a customer has a specfic Customer Terms established (setup will be discussed in next week's newsletter), 

the customer may have a payment discount percent based on when they pay their balance. When you go into the Pay on Account (POS/AR | Payments) and find the customer making the payment, you will be presented with an overview of the customer's account. In the top right corner of this window will let you know the total balance and if there is a payment discount (the "Payment Discount Balance" is the amount to be paid by the customer minus the percentage discount dollar amount which is shown to the right in the "Discount Amount" field). Enter the amount to be paid in the "Enter Payment Amount" field and click Next.

For this example,  the customer will be paying off his account balance (minus the discount amount obviously). The total balance on the account is $140.98 but since he is paying it within the discount window, he gets a 10% discount so he only has to pay $126.76. Once we are on the Payment on Account application screen, we can do one of two options. Selecting Automatic will automatically apply the payment and discount to the necessary invoice(s). Selecting Manual will allow you to split the payment among the invoices (this option is better suited if a full payment is not being given and the customer is wanting to apply the payment to specific invoices).

In the event you choose manual, right clicking the Payment field in the listing of invoices will apply as much of the payment to that invoice that the system can (if invoice is $25 but payment total is $50, only $25 will be applied). If you decide to enter the value manually, make sure you type in the $126.76 in the Payment field on the invoice and enter in the remainder/Discount Balance amount in the Pay Disc. field on the same invoice. This should equal out to the total amount and the customer will be paid in full.