How to add an Early Payoff Discount and Payoff the Balance on an Advance

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This article was developed to describe the process of how to add an early payoff discount and how to payoff a balance early on an advance.


Adding an early payoff discount on an advance

For this example, I will be adding a $2,800 discount to an advance with $27,800 remaining on the balance. This merchant has already wired us the $25,000, and I need to apply this towards the advance for accurate reporting. 


Below is the Centrex Software training video that describes the process of how to add an early payoff discount and how to payoff a balance early on an advance.


Steps for adding a payment:

1. Open the advance that you are adding the early payoff discount to and click on the payments tab on the left-hand side within that advance. 

2. * Add Payment - Click 'Add Payment'.

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3. * Type -  You are going to select 'Client Refund'.

4. * Subtype - Yes – select subtype 'Early Payoff Discount'.

5. * Associate Advance - Select the associated advance to the transaction you are adding.

6. * Process Date -  Select the process data for this transaction. 

7. * Occurs - Enter '1' for occurrence. 

8. * Amount - Enter the 'Early Payoff Discount' amount that you are giving to the merchant for paying off his balance early, in this case, it would be negative $2,800 so that the account balance will decrease by $2,800. 

9. * Memo - Manually enter 'Early Payoff Discount' in the memo text box. (Optional)

10. * Actions - Select 'Schedule Transaction' and save.

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After scheduling the client refund transaction, you will then need to go and edit the open transaction and manually mark the refund transaction as cleared for both balances to decrease. 

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How to apply a payoff balance payment to an advance. 

1. Payoff Balance - Click on the payoff balance tab within the payments tab of the advance. 

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2. Enter Payoff Amount - Enter the remaining account balance amount into the payoff amount tab. This is the amount that you have already received from the merchant. 

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After clicking 'OK' you will then see a cleared ACH Client Debit/Payoff Balance transaction in the payments tab. 

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Also, the Account Balance and RTR Balance should now be at $0.00. 

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This is how to successfully add an early payoff discount and payoff the remaining balance on an advance. Please reach out to for any questions.



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