Dynamic Payment Terms

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 Invoicement® Suite will make the transition to dynamic payment terms easy. Here's how it's done:

1. Define dynamic payment terms within the familiar SAP® environment
2. A straightforward analysis helps you identify the most promising candidates
3. 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.