Yes, discounts reduce the target collection for each investor. In this follow example, a deal with Advance Amount of $1000 and payback of $1500 is split 50/50 between two investors, Axel Capital and Parker Capital. Without a discount, the target collection for each investor would be $750 each. Now a $250 discount as added as a manual transaction. This $250 will be split 50/50 as well for a $125 reduction to each investor. Now Axel Capital and Parker Capital's target collection is $625 (750 - 125).
