Hi Ryan,
When a customer has payment Terms that allow for an early payment discount, new invoices for this customer will use that Terms code, unless you choose to change this on the invoice. Posting this invoice will save all the terms information, including the discount date and the percentage.
When a payment is entered for this invoice, if the document date is not later than the discount date, the discount percentage will automatically be calculated for you, and the payment amount applied to the invoice will be reduced by the discount amount.
Here is a link to a
short video on how Payment Terms work in Adagio Receivables.