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 a proposal and propose new terms and due dates to the supplier. Organizations can make better use of their working capital by accepting proposals or by 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. Accepted proposals ultimately update the invoices in the proposal 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.