What is a " settlement discount " in Buying?

If you offer customers discount, perhaps for early payment, you can apply settlement discount on your Sales Order

An offer to reduce an item's price made by a supplier to a purchaser as an incentive to make payment within a given time frame. For example, a consumer might agree to buy a product for $1,000 from a business with a purchase discount of $100 if payment is received within30 days.

practically its the net amount purchaser going to pay you on any big order.