Collaborate with more suppliers than ever before on Ariba Network
The SAP Ariba Payables solution includes discounting capabilities that work in conjunction with SAP Ariba Invoice Management. If your accounts payable strategy is putting stress on your suppliers, try collaborating with them on dynamic discounting and discount management instead. Not only can you boost your supplier's liquidity, you can also earn far greater returns than short-term cash investments provide.
Collaborating with the suppliers you choose, you'll use on-demand tools for automating the early-payment discounting process, from initial offer through final capture. It all transpires over Ariba Network, the world's largest business network. If a supplier isn't already on it, it's easy to enable them. Then you'll be fully equipped to …
- manage payables and cash with greater precision, control, and visibility
- expand discount capture across targeted suppliers, spend, and invoices
- enforce pre-negotiated contract and discount terms
- employ tools for prorated discounts as well
All the flexibility and control you need
Better cash returns
Discounting can deliver better returns than playing float. For example, consistent use of 2/10 net 30 terms pays an APR of 36.5 percent.
Under your control
You set business rules that initiate and approve payments only when you're assured discounting will deliver your required internal rate of return.
"Set it and forget it"
With one option, you set your preferred discounting parameters once. Upon invoice approval, automation takes over to capture pre-determined discounts.
Set prorated discount terms that capture discounts after the due date on a sliding scale. Or use dynamic discounting, and define how suppliers can initiate payments as needed.
Time and cost savings
Eliminate slow and costly processes and accelerate the cash conversion cycle. Minimize supplier inquiry calls with automated notifications of discount offers and approvals.
Web-based tools equip suppliers to collaborate with you on payment timing, while an easy-to-understand dashboard keeps them apprised of payment status.
SAP Ariba’s solution experts can help drive adoption within your organization and among your supplier base.
We can help you organize, categorize, and target your suppliers for participation based on their predisposition to discounting.
To learn more about discounting capabilities within the SAP Ariba Payables solution, including dynamic discounting, read this datasheet.