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).