Dynamic Discounting
Dynamic Discounting: New Possibilities for AP
Dynamic Discounting is rapidly gaining adoption among AP departments at large corporate organizations because it can save buyers up to 0.5% of their annual spend. Our Dynamic Discount Optimizer maximizes your AP department's revenue generating potential by offering your suppliers early payments and dynamic payment terms.
Download our free dynamic discounting informational flyer:
Early Payments
We'll provide you with all the ingredients you need for a successful introduction and rollout of early payments. Those ingredients include a user-friendly supplier portal that provides online communication and helpful self-services for quick and easy supplier adoption and supplier on-boarding.
In addition, we'll provide a comprehensive module inside your SAP® system that allows you to manage discounts globally for supplier groups or individual suppliers, as well as the freedom to define your liquidity threshold. Do you want to know how much cash you committed and the returns you achieved? Our real-time reporting tool arms you with this information and even provides the option to include bank financing.
We also provide additional logic around the SAP payment run to ensure that all your discounted invoices are truly paid as agreed. Finally, because our solution is a certified SAP Add-on, implementation is quick and easy.
Dynamic Payment Terms
If you're currently missing out on valuable discounts due to late invoice approvals, consider inviting your suppliers to adopt payment terms that have a sliding scale.
With dynamic payment terms each day corresponds to a prorated discount rate. This sliding scale allows you to capture discounts even after conventional discount days have passed. For example, if an invoice with payment terms 2% 10 net 30 is approved on day 15, you would pay on day 15 against a 1.5% discount, instead of paying after 30 days without realizing a discount. The result: your supplier gets paid as soon as the invoice is approved while you capture discounts on literally every invoice that offers a discount.
Our Dynamic Payment Platform will make the transition to dynamic payment terms easy. Here's how it's done:
- Define dynamic payment terms within the familiar SAP® environment
- A straightforward analysis helps you identify the most promising candidates
- Invite suppliers to opt in via our automatic online enrollment campaign
Upon supplier acceptance we will ensure that payments are handled properly. Meanwhile, extensive reporting capabilities on your discount capture help you stay in full control.
Our architecture scales easily and can grow with you, allowing you to add functionality or connect to other solutions as your business needs require. You might wonder why we designed our solution as such. The answer is simple: we trust in our value proposition and therefore feel no need to lock you in.