Dynamic Discounting

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Dynamic Discounting allows suppliers to choose to get paid earlier in exchange for a discount on the goods or services provided. Suppliers choose the payment date* and the discount amount updates dynamically. Suppliers can opt in for one invoice or for multiple invoices.

*Only payment dates which align with Google’s payment schedule are possible to select.

Traditional Discounting

Dynamic Discounting

  • Standing, Supplier or PO-Based
  • Static payment term
  • Invoice-by-Invoice, Ad Hoc Based
  • Dynamic terms on a “sliding scale”

Video Walkthroughs

Accepting a New Standing Early Payment Term Offer (SEPTO)
With below video you will learn how to accept a new SEPTO offer.
Note: This demo is not a reflection of the discount % Google will be offering.
Accepting a New SEPTO Offer

What is a Standing Early Payment Offer?

If you agree to a Standing Early Payment Term, early payment will be executed automatically upon an invoice being fully approved without any further intervention by you as the supplier.

  • Applies to all US invoices on standard terms*
  • Utilizes dynamic (sliding scale) discount

*NET 45 Calendar Days

A dynamic “sliding scale” discount is an early payment term where the amount of the invoice discount decreases the closer the early payment comes to the net term due date, enabling suppliers to receive early payment regardless of when the invoice is approved to pay. Go here to check an example.

How to Accept a Standing Early Payment Offer

  1. Log in to your Ariba Supplier Account
    1. Go to login page
    2. Log in with your company’s Ariba Network credentials
    Not sure what they are? Search for your company here. Then select Actions > Contact Admin to email the person at your company who is managing access.
  2. Add the email of your early payment decision maker to receive notifications/updates on standing offers
    1. Once you’re logged into your homepage, locate the Administration Drop Down Menu in the upper right corner of the screen
    2. From this menu, select Accelerated Payments in the Network Settings section
      If you do not have this option, the access granted by your account administrator needs to be modified.

      Contact your account administrator to either perform the steps noted on this page, or they can add access to allow you to perform the tasks. See how to add discount access here.

      Access should be granted for Inbox and Supplier Discount Administrator.
    3. In the Notifications section, enable discount notifications by checking both boxes
    4. Once the check-mark is present, enter the email address of the person or group where the notification should be sent
      Both notifications should be checked and email entered to receive
      communication from Google in the future.
    5. Select Save
      You can enter up to three different email addresses per notification. Separate the emails with a comma (no space).
  3. Review the early payment offer on your supplier portal
    1. Below Notifications in the Customer Proposed Payment Terms section, you’ll see one or multiple standing early payment terms offered to you
    2. To view, select the Review/Accept option in the Actions column
  4. Accept the early payment terms
    1. The next screen shows the discount percentage which will be applied depending on the payment date
      Note: Recall with a standing term, you’ll be paid on the earliest payment date unless the invoice is approved after this date, in which case you’ll be paid on the next earliest payment run with the prorated discount applied.
    2. Select the checkbox to agree to the proposed early payment terms
    3. Select Accept Offer
  5. Review and save your changes
    1. On the next screen, you should see the offer’s status has updated to Accepted
    To opt out of the offer at any time, you’ll select the Review/Reject action.

More Questions?

Review our FAQs on the Supplier Help for more details.

Accepting an Ad Hoc (Buyer-Initiated) Early Payment Offer
With below video you will learn how to accept buyer initiated offer.
Note: This demo is not a reflection of the discount % Google will be offering.
Accepting Ad Hoc Buyer Initiated Offer

What is an Ad Hoc Early Payment Offer?

Unlike a Standing Offer which applies to all eligible supplier invoices, Ad Hoc Early Payment Offers are accepted by the supplier only on an invoice-by-invoice basis.

  • Applies to all US invoices on standard terms*
  • Allows you to select the early payment date / discount percentage
  • When an invoice becomes eligible, you will be notified via email and an alert on the Ariba Network to review and accept the terms
  • This review can be done manually or through automated acceptance rules defined in your Ariba Network account

*NET 45 Calendar Days

How to Accept an Ad Hoc Early Payment Offer

  1. Log in to your Ariba Supplier Account
    1. Go to login page
    2. Log in with your company’s Ariba Network credentials
    Not sure what they are? Search for your company here. Then select Actions > Contact Admin to email the person at your company who is managing access.
  2. Add the email of your early payment decision maker to receive notifications/updates on standing offers
    1. Once you’re logged into your homepage, locate the Administration Drop Down Menu in the upper right corner of the screen
    2. From this menu, select Accelerated Payments in the Network Settings section
      If you do not have this option, the access granted by your account administrator needs to be modified.

      Contact your account administrator to either perform the steps noted on this page, or they can add access to allow you to perform the tasks. See how to add discount access here.

      Access should be granted for Inbox and Supplier Discount Administrator.
    3. In the Notifications section, enable discount notifications by checking both boxes
    4. Once the check-mark is present, enter the email address of the person or group where the notification should be sent
      Both notifications should be checked and email entered to receive
      communication from Google in the future.
    5. Select Save
      You can enter up to three different email addresses per notification. Separate the emails with a comma (no space).
  3. Once your next eligible invoice is approved, the contact in step #2 will receive a notification that an ad hoc offer is available to accept
    1. Once an invoice is approved and becomes eligible for early payment, a notification will be automatically sent
    2. Select the View early payment offer on the email to open the offer on your Ariba Supplier Account
    If you have an enterprise account, you can skip this step and log into your account directly. Select Inbox then Scheduled Payments and finally one of the Payment Proposals to navigate to the screen show in the next step.
  4. Review and accept the ad hoc offer in your Ariba Account
    1. Review the possible payment dates and discount amounts
      The Settlement Date is the date when you can actually expect to receive Google’s payment.
    2. Select the date you would like to be paid
    3. Select Accept Early Payment Offer

More Questions?

Review our FAQs on the Supplier Help for more details.

Setting Up Ad Hoc (Buyer-Initiated) Offer Auto-Acceptances
With below video you will learn how to set up auto acceptance.Supplier Auto Acceptance Setup
 
Setting up Supplier User to Accept Discount Offers
With below video you will learn how to approve standing early payment terms as well as how to accept early payment offers.
Setting up Supplier User to Accept Discount Offers
 
How to set up Early Payment Notifications
With below video you will learn how to set up early payment notifications.Setting up Early Payment Notifications 1
 

Early Payment Program - Sliding Scale Example


In the case of a 2% discount, if the 15-day discount term is not met, the discount is calculated on a pro-rated scale and will decrease proportionally, according to the date the payment is made.

Example: if the invoice is approved after the initial 15 days but before the 45th day deadline, say, on the 20th day, the discount will change proportionally; in this example, to 1.66%.

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