3 Dynamic Discounting

Dynamic Discounting is a solution that provides suppliers with the option of receiving early payment in exchange for a discount on their invoice.

Suppliers propose to offer discount if paid early where as buyers can also propose to pay early in exchange for a discount.

Dynamic discounting is typically applied on an invoice-by-invoice basis, with the discount generally expressed as a percentage of the face value of the invoice. Dynamic discounting is a true win-win solution that benefits both trading partners. Not only does this solution strengthen each party’s financial health, it also improves relationships throughout the supply chain.

The “dynamic” component refers to the option of offering variable discounts based on the dates of payment to suppliers. In most cases, the earlier the payment is made, the greater the discount.

Note:

The Dynamic Discounting feature is not displayed if the Supply Chain Finance Module is not implemented by the bank.

• Overview
  This topic describes the overview of the dynamic discounting.
• Create Discount Offer
  This topic provides systematic instructions to create a discount offer.
• View Discount Offer
  This topic provides systematic instructions to view the discount offers that have been created.