Obtain Greater Supplier Discounts.

Optimize your working capital requirements through dynamic discounting. Discounting benefits buyers and suppliers alike and facilitates collaboration. Automation of the financial supply chain integrates interests of buyers, suppliers and financial institutions.
Source : PayStream Advisors – August 2007

The dynamic discount manager provides a buyer with a mechanism to create and manage an offer of discounted early payment to a supplier. Vendor invoices which have cleared for payment earlier than the agreed terms, can be offered for early payment to the vendor with a discount applied. The discount reduces over time, reaching zero when the due payment date approaches.

Individual discount schemes can be created for different suppliers. Your vendors can view these early payment offers online via the Vendor Portal. They can choose to accept one of the levels of early payment you are offering for each invoice by completing a check box and submitting the relevant items. The invoice records will then be collated for update in SAP.

The selected records should then be available for payment on the next payment run with the agreed discount deducted. If a vendor ignores the early payment offer, it will simply be paid at the agreed rate as per your original terms with the supplier.

The benefits of leveraging dynamic discounts include: