1. Using AI Apps for Financials
  2. Early Payment Discounts

Early Payment Discounts

Payments managers in Oracle Payables can use the APR recommendations to offer dynamic early payment discounts to their suppliers for single payments on an ad hoc basis. Through the integration with Oracle AI Apps for ERP, they can also use early payment discounts through campaigns and automated payment processing.

Supplier categories help you identify target suppliers for early payment discount programs and provide APR recommendations for an early payment discount offer. Payables discount managers in AI Apps for ERP can create campaigns that define offer terms and send early payment offers to these targeted suppliers.

As a payables discounts manager, you control and manage different discounts to offer to your suppliers in exchange for paying their invoices early. Here are the ways to offer early payment discounts to your suppliers:

  • Through campaigns and automated processing of offer responses, for both standing offers and one-time offers

  • Through standing offer enrollments

  • Through dynamic offers (on an ad hoc basis) for single payments

Campaign Management

To send discount offers using campaigns, you need Supplier Portal, Sourcing, or Supplier Qualification. Identify suppliers that you intend to target for an early payment discount campaign by applying selection criteria on the Payment Discounts page in Oracle AI Apps for ERP. Use criteria filters to add multiple suppliers to an early payment discount campaign and define your offer terms. Use the campaign to send early payment offers to applicable suppliers. Responses to these early payment offers are automatically processed and applied in your payment process requests.

Standing Offers

When you enroll suppliers into standing offers, you're creating a set of criteria for recurring offers over an agreed time period. Standing offers use a combination of AI recommendations with manual overrides that you specify, such as APR and site assignment. Use the categories on the Payment Discounts page as a starting place to view and identify suitable suppliers and manage their enrollments manually or through an email offer from campaign management. In your payment process request, select the options to take early payment discounts based on standing offers.

Dynamic Offers

Oracle Financials Cloud uses AI models to calculate discount recommendations for single payments. When you create payments, you can accept or override the recommended APR for the selected transactions. The combination of the accepted discount rate and the number of days paid early determines the actual discount and payment amounts. Dynamic offers are helpful when managing an ad hoc early payment request.