PeopleSoft Enterprise eSettlements 9.1 PeopleBook

Managing Proposals

This chapter provides an overview of proposals and discusses how to:

Create proposals.
Approve proposals.
Clean up proposals.
Manage dynamic discounts.

Understanding Proposals

Dynamic discounting supports the following high-level features:

Supplier driven discounting. This feature provides suppliers with the ability to create proposals for a group of invoices with discount terms that the buyer can accept or deny. Suppliers can gain control over their invoicing policy, better manage receivable-based working capital, reduce days sales outstanding (DSO), and ensure on-time payment by giving buyers an incentive to pay invoices early.
Buyer driven discounting. This feature allows buyers to select one or more invoices in an offer and propose new terms and due dates to the supplier. Organizations can make better use of their working capital by accepting proposals as well as making offers for better discounts. They can define the discounts they want to receive and ultimately improve working capital.
Discount analysis. This feature allows suppliers and buyers to analyze invoices based on existing discounts, accepted proposals, and new discounts or due dates and then determine which conditions are most advantageous for improving their working capital.
Status emails. This feature enables suppliers and buyers to send emails to indicate the status of proposals and offers.

All payment timing and payment terms must be set up in the system before they can be used in a proposal or offer. Accepted proposals or offers ultimately update the invoices in the proposal or offer with the new negotiated terms.

Only approved vouchers will show up in the search and only regular vouchers with a gross amount greater than zero.

Creating Proposals

This section discusses how to:

Search for invoices.
Create proposals.

Pages Used to Create Proposals

Page Name	Definition Name	Navigation	Usage
Create Proposals	EM_PRO_CREATE_LIST	eSettlements, Invoices, Create Proposal	Search for invoices to create proposals for buyers or suppliers.
Manage Proposals	EM_PROPOSAL_CREATE	Select the required invoices and click the Create Proposal button on the Create Proposals page.	Propose new terms, expiration date, and settlement date (due date) and perform calculations using old and new terms.

Searching for Invoices

Access the Create Proposals page (eSettlements, Invoices, Create Proposal).

Invoices already included in a proposal or offer are not available for selection. The system does not allow invoices to be included in more then one proposal or offer in a pending, accepted, or denied status. The system allows invoices associated with canceled proposals to be selected for new proposals.

To create a new proposal, users search for applicable invoices, select the invoices they want to include in a new proposal, and then click the Create Proposal button.

Buyer, Supplier, and Supplier Location	These fields are required for searching for invoices to include in proposals.
Create Proposal	Click this button to access the Manage Proposals page, where the user can create a new proposal and ensure that one or more invoice row is selected. Otherwise, the user can issue an error message stating that at least one invoice must be selected. Proposals are created for one buyer.

Creating Proposals

Access the Manage Proposals page (select the required invoices and click the Create Proposal button on the Create Proposals page).

Basis Date

The date that will be used to calculate the new discount. For example, if the new discount is due in 10 days, then the new discount due date will be 10 days from this date.

Display Currency

Select a currency to display for the calculations. This field displays monetary amounts only. The invoice currencies are not changed.

Expiration Date

The proposal expiration date populates based on the proposal creation date (today's date) plus the number of expiration days established in the buyer details. A supplier can modify this field to propose a longer or shorter expiration date.

Interest Rate

Enter the interest rate saving the money will earn.

Payment Terms

Select a payment term to use as the new basis for this proposal.

You must predefine payment terms in the system.

New Total Discount Amount

Displays the total discount amount, which is calculated as follows:

Net amount * New discount rate * Number of days payment deferred / 360 days

New Total Settlement Amount

Displays the gross amount minus the discount amount.

Total Discount Gain or Loss

Displays the new discount amount minus the current discount amount.

Total Interest

Displays the amount of interest the money would earn if it were kept in an interest account.

Discount Evaluation

The total discount gain or loss minus total interest.

Calculate New Discount

Click to calculate the new discounts based on proposed terms and the due date entered.

Save

Click to save the proposal without submitting the proposal to the buyer. The proposal status is set to Pending.

Submit Proposal

Click to confirm the proposal parameters and send an email notification to the applicable buyer.

Cancel Proposal

Click to cancel the proposal. The proposal status is set to Cancel and allows invoices to be selected on other proposals.

The add and delete buttons are active when the proposal is in Pending status.

Approving Proposals

This section discusses how to approve proposals.

Page Used to Approve Proposals

Page Name	Definition Name	Navigation	Usage
Approve Proposals	EM_PROPOSAL_APPROV	eSettlements, Invoices, Approve Proposals	Approve or deny proposals.

Approving Proposals

Access the Approve Proposals page (eSettlements, Invoices, Approve Proposals).

Calculate New Discount	Click to calculate the new discount based on the parameters entered.
Accept Proposal	Click to accept the proposal. The system directly updates applicable invoices that are contained within the proposal with the new terms and due dates. The system sets the proposal status to Accepted, which means it can no longer be modified, and sends an email notification back to the buyer that the offer was accepted.
Deny Proposal	Click to deny the proposal. If you deny the proposal, you must enter comments. The comments are included in the email notification to the buyer with a reason for the denial. If denied, the system updates the offer status to Denied. The supplier can modify the terms, due date, expiration date, or a combination of these fields and resubmit the proposal to the buyer. The system sets the proposal status to pending if the supplier modifies the proposal and resubmits it to the buyer.

Cleaning Up Proposals

This section discusses how to clean up proposals.

Page Used to Cleanup Proposals

Page Name	Definition Name	Navigation	Usage
Cleanup Proposals	EM_PRO_CLEANUP	eSettlements, Batch, Cleanup Proposals	Delete expired proposals.

Cleaning Up Proposals

Access the Cleanup Proposals page (eSettlements, Batch, Cleanup Proposals).

Expired Date

Enter the expired date for the proposals. The system deletes all expired or cancelled proposals with dates after this date.

Proposal Processing

Select the proposals you want to clean up. Select All Expired Proposals to delete all proposals with expired dates after the date entered or Cancelled Only to delete proposals with a cancellation date after the date entered.

Buyer Processing

Select All Buyers to clean up proposals for all buyers or select Specific Buyer to clean up proposals for specific buyers.

Managing Dynamic Discounts

This section discusses how to manage working capital.

Page Used to Manage Working Capital

Page Name	Definition Name	Navigation	Usage
Dynamic Discounting Management	EM_PRO_DISC_ANALYS	eSettlements, Invoices, Dynamic Discounting Management	Assist suppliers in searching for scheduled payments, accepted proposals, and offers that offer the least discount for the amount of capital required by a given date.

Managing Working Capital

Access the Dynamic Discounting Management page (eSettlements, Invoices, Dynamic Discounting Management).

Settlement Date

Enter the settlement date to meet your working capital goal. The system looks at all invoices that are scheduled to be paid (not in an offer or proposal) before this date.

Buyer

Enter a buyer to narrow the search results.

Supplier

Enter a supplier to narrow the search results.

Supplier Location

Enter a location for the supplier to further narrow the search results.

Documents to Display

Select the documents to be included in the analysis. Select Invoices and Proposals, Invoices Only, or Proposals Only.

Display Currency

Enter a currency for use in displaying monetary amounts.

Proposal Amount Created

Displays a running gross total of proposals created.

Accepted Proposals

Displays the discount amount for accepted proposals.

Gross Amount

Displays the gross amount of all proposals for this buyer and supplier combination.

Total of Proposals

This is the returned total of all invoice gross amounts.

Invoices Before Settlement

This is the total invoice amount that is due before the settlement date entered.

Liability To Pay

This is the total of proposal settlement amount and total invoice amount.

Due After Settlement Date

Displays the total amount due after the settlement date entered in the search criteria.

Requested Settlement Not Met

This is the amount of the requested working capital not met by the invoices and proposals returned.

Create Proposals

Click to access the Create Proposals page and create new proposals using the selected invoices or invoices selected on the Create Proposals page.

Invoices

This grid displays the invoices eligible to be selected for a proposal. Grids are sorted by due date. For invoices beyond the anticipated settlement date, an exclamation mark icon appears next to the Invoice ID.

Basis Date	The date that will be used to calculate the new discount. For example, if the new discount is due in 10 days, then the new discount due date will be 10 days from this date.
Display Currency	Select a currency to display for the calculations. This field displays monetary amounts only. The invoice currencies are not changed.
Expiration Date	The proposal expiration date populates based on the proposal creation date (today's date) plus the number of expiration days established in the buyer details. A supplier can modify this field to propose a longer or shorter expiration date.
Interest Rate	Enter the interest rate saving the money will earn.
Payment Terms	Select a payment term to use as the new basis for this proposal. You must predefine payment terms in the system.
New Total Discount Amount	Displays the total discount amount, which is calculated as follows: Net amount * New discount rate * Number of days payment deferred / 360 days
New Total Settlement Amount	Displays the gross amount minus the discount amount.
Total Discount Gain or Loss	Displays the new discount amount minus the current discount amount.
Total Interest	Displays the amount of interest the money would earn if it were kept in an interest account.
Discount Evaluation	The total discount gain or loss minus total interest.
Calculate New Discount	Click to calculate the new discounts based on proposed terms and the due date entered.
Save	Click to save the proposal without submitting the proposal to the buyer. The proposal status is set to Pending.
Submit Proposal	Click to confirm the proposal parameters and send an email notification to the applicable buyer.
Cancel Proposal	Click to cancel the proposal. The proposal status is set to Cancel and allows invoices to be selected on other proposals.

Expired Date	Enter the expired date for the proposals. The system deletes all expired or cancelled proposals with dates after this date.
Proposal Processing	Select the proposals you want to clean up. Select All Expired Proposals to delete all proposals with expired dates after the date entered or Cancelled Only to delete proposals with a cancellation date after the date entered.
Buyer Processing	Select All Buyers to clean up proposals for all buyers or select Specific Buyer to clean up proposals for specific buyers.

Settlement Date	Enter the settlement date to meet your working capital goal. The system looks at all invoices that are scheduled to be paid (not in an offer or proposal) before this date.
Buyer	Enter a buyer to narrow the search results.
Supplier	Enter a supplier to narrow the search results.
Supplier Location	Enter a location for the supplier to further narrow the search results.
Documents to Display	Select the documents to be included in the analysis. Select Invoices and Proposals, Invoices Only, or Proposals Only.
Display Currency	Enter a currency for use in displaying monetary amounts.
Proposal Amount Created	Displays a running gross total of proposals created.
Accepted Proposals	Displays the discount amount for accepted proposals.
Gross Amount	Displays the gross amount of all proposals for this buyer and supplier combination.
Total of Proposals	This is the returned total of all invoice gross amounts.
Invoices Before Settlement	This is the total invoice amount that is due before the settlement date entered.
Liability To Pay	This is the total of proposal settlement amount and total invoice amount.
Due After Settlement Date	Displays the total amount due after the settlement date entered in the search criteria.
Requested Settlement Not Met	This is the amount of the requested working capital not met by the invoices and proposals returned.
Create Proposals	Click to access the Create Proposals page and create new proposals using the selected invoices or invoices selected on the Create Proposals page.
Invoices	This grid displays the invoices eligible to be selected for a proposal. Grids are sorted by due date. For invoices beyond the anticipated settlement date, an exclamation mark icon appears next to the Invoice ID.