Question Clearly sourced

Expert knowledge for digital decisions

How are discount terms and payment conditions specified in the e-invoice?

Short answer

In structured format, not as free text. The standard provides a dedicated field for payment conditions that must be machine-readable. A sentence like "2% discount for payment within 14 days" in free text will not be recognized by any system – and the discount will not be automatically applied.

The Problem with Free Text

On a paper invoice, a human reads the discount condition. In the e-invoice, software should evaluate it and schedule the payment accordingly. Free text cannot be evaluated by software.

The consequence: The discount is not applied, even though it was agreed – for regular suppliers, this adds up significantly over time.

How it Should Look

The standard specifies a structured format for payment conditions, where percentage, deadline, and base amount are separately indicated. Your invoicing software should support this – actively check this, as many older programs still only write text.

When Receiving

Check whether your system reads the payment conditions and transfers them into the payment process. If not, the main economic benefit of the e-invoice is lost in procurement.

Common Errors

  • Discount only in free text
  • Contradictory information between field and text
  • Discount applied to the gross amount instead of correctly calculated
  • Due date missing, only "14 days" specified – without reference date

Practical Advice

Set up payment conditions as master data for the customer, not manually for each invoice. This ensures uniformity, readability, and prevents accidental changes.

Key facts

Mandatory
Structured, not as free text
Consequence of free text
Discount is not automatically applied

Sources

All external claims are backed by traceable sources.
  1. 01
  2. 02
    § 14 UStG – Ausstellung von Rechnungen Bundesministerium der Justiz

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