Set the APR Threshold for Recommendations

The AI model uses the APR range that you specify on the Settings page when calculating early payment discounts offered to enrolled suppliers.

The range setting also controls the APR range on a supplier page that helps users analyze supplier discount opportunities.

Tip: As an Oracle Financials Cloud user, the APR that's recommended using AI should reflect the business goals of your buying organization. These goals can include your expected return rate on working capital as a floor and can provide control over a ceiling rate to constrain recommendations.The Discounts Threshold Percentage range should reflect your organization's minimum expected return and maximum discount allowed. These minimum and maximum values establish your business goals through the AI models for APR recommendations. By default, the range is set as 0% to 100%. It should be a priority to establish a range that's appropriate for your organization. A typical industry benchmark for APR ranges would be a minimum of 8% and a maximum of 50%. This range would deliver discount ranges from .2% to 12.5% based on days paid early.

The minimum and maximum values for the APR range are specified on the Settings page by payables administrators.