Set the APR Range for Recommendations

If you aren't using early payment discounts, you can skip this step. The adaptive intelligence model uses the APR range you specify on the Settings page to control the rates for early payment discount offers.

The range you specify also controls the APR range that helps users analyze supplier discount opportunities. The range that you set should reflect the business goals of your buying organization.

For example, these business goals can include your expected return rate on working capital as a floor and can also provide control over a ceiling rate to constrain the recommendations. The range should reflect your organization's minimum expected return and maximum discount allowed to establish your business goals through AI models for APR recommendations.

By default, the range is set as 0% to 40%. It should be a priority to establish a range that is appropriate for your organization. As a guideline, a typical industry benchmark for APR ranges would be 8% as a minimum value and 50% as a maximum value, delivering discount ranges from .2% to 12.5% based on days paid early.

1. Ensure that you have completed the steps to set conversion currency.

2. Sign in to AI Apps for ERP as a user with the Payables Administrator role.

3. Click Settings.

4. Enter the desired minimum and maximum values for the APR range.

5. Click Save.