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.

 

 

 

Note: This example is illustrative and does not reflect Google's early pay offer sliding scale. The actual amounts are presented at the time of early payment offer.

 

Accepting a New Standing Early Payment Term Offer

Video Guide on How to Review/Accept an Offer

Go here to watch the demo. 

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

Overview of Steps to Accept the Standing Offer:

1. Log in to your Ariba Supplier Account.
2. Add the email of your early payment decision maker to receive notifications/updates on standing offers.
3. Review the early payment offer on your supplier portal.
4. Accept the early payment terms.

Step-by-Step Guide on How to Review/Accept an 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

      Note: 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
   5. Select the frequency you wish to receive notifications.
   6. Select Save
      You can enter up to three different email addresses per notification. Separate the emails with a comma (no space).
      
      Both notifications should be checked and email entered to receive communication from Google in the future.
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/Reject 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
   4. The status of the offer will change to Accepted

      Note: To opt out of the offer at any time, select the Review/Reject action.

      

      Note: This example does not reflect Google’s current discount rate. Please refer to your Ariba portal for current discount rates.

Accepting an Ad Hoc (Buyer-Initiated) Early Payment Offer

Video Guide on How to Review/Accept an Offer

Go here to watch the demo.

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

Step-by-Step Guide on How to Review/Accept an Offer

Overview of Steps to Accept the Ad Hoc Offer

1. Log in to your Ariba Supplier Account.
2. Add the email of your early payment decision maker to receive notifications/updates on ad hoc offers.
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.
4. Review and accept the ad hoc offer in your Ariba Account.

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 ad hoc offers.
   1. Once you’re logged into your homepage, locate the Administrator's Initials button in the upper right corner of the screen.
   2. From this menu, select Settings, then Accelerated Payments.

      Note: 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
   5. Select the frequency you wish to receive notifications.
   6. Select Save
      You can enter up to three different email addresses per notification. Separate the emails with a comma (no space).
   
   Both notifications should be checked and email entered to receive
   communication from Google in the future.
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. Click the Login button in the email to login and view the offer in your Ariba Supplier Account.
   If you have an enterprise account, you can skip this step and log into your account directly. Select Workbench then Scheduled Payments and select the eligible Payment Proposal 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

 

Setting Up Ad Hoc (Buyer-Initiated) Offer Auto-Acceptances

With this video you will learn how to set up auto acceptance.
 

Setting up Supplier User to Accept Discount Offers

With this video you will learn how to approve standing early payment terms as well as how to accept early payment offers.

How to set up Early Payment Notifications

With this video you will learn how to set up early payment notifications.
 

Setting up Early Payment Cash Optimizer

With this video you will learn how to set up the Early Payment Cash Optimizer.

FAQ

What is dynamic discounting?

Dynamic Discounting delivers faster invoice payment in exchange for an agreed upon discount deducted from the gross invoice.

How is dynamic discounting different from traditional discounting?

Traditional discounting typically requires early payment terms to be included on contracts and uses static terms. Dynamic discounting allows suppliers to opt in to new payment terms using Ariba and can leverage a sliding scale to allow for dynamic terms where the discount amount adjusts according to the payment date.

How will Google implement dynamic discounting?

Google will implement two types of dynamic discounts:

• Standing Discounts: Supplier opts in once via Ariba and the offer applies to every subsequent, approved invoice on standard terms. Details on how to accept standing offers can be found here.Standing offers will be offered initially.
• Ad Hoc Discounts: Supplier opts in on an invoice-by-invoice basis and selects their desired payment date and associated discount. Details on how to accept ad hoc offers can be found here. Ad hoc offers will be offered if a supplier does not accept the standing offer. 

As a supplier, what are the benefits I can expect?

Benefits to suppliers include:

• Accelerated Cash Flow: Participating suppliers can accelerate turning receivables to cash
• Control Over Payment Timing: Participating suppliers have the opportunity to request automatic early payment on all invoices upon full approval to pay or ASAP payment on individual invoices as cash flow needs dictate

What rate will Google offer?

The most up-to-date offer will always be available on the supplier’s Ariba Account. 

How do I accept a discount offer?

Suppliers accept a standing discount offer as a one-time selection in their Ariba profile. Suppliers accept ad hoc discount offers by logging into their Ariba profile and selecting specific invoices for which to accept a discount. If a supplier does not accept a standing discount offer initially, Google will give them the option to accept an ad hoc offer. Both offers will remain available on the supplier’s Ariba portal to accept at a later time. You can find more information on how to accept standing and ad hoc offers in the videos linked.

Note: Google and Ariba are unable to apply, remove, or edit early payment offers - only the supplier can opt in and opt out of early payment offers.

How do I get access to opt in to early payment offers?

See this quick video to learn how to add users on your Ariba Supplier Network. 

How do I opt out of a discount offer?

If a supplier who has opted into a standing discount offer would like to opt out at a later time, they will need to follow the same steps they took to accept in their Ariba Account by unchecking the offer. For ad hoc offers, there is no need to opt out. If the supplier does not accept an early payment date on an eligible invoice, then no discount will be applied.  

Note: Google and Ariba are unable to apply, remove, or edit early payment offers - only the supplier can opt in and opt out of early payment offers.

What happens if I choose not to review or accept an Early Payment offer?

Nothing. If a supplier does not review or chooses not to take action on an early payment offer, whether standing or ad hoc, invoices will be paid according to each invoice’s net terms. 

Do we need to renegotiate contracts to implement dynamic discounting?

Contracts do not need to be renegotiated due to the opt-in nature of dynamic discounting offers. By opting in, suppliers are agreeing to the new terms and conditions and authorizing that they have the authority to do so.

Which of my invoices are eligible for dynamic discounting?

Generally, the requirements for the early payment program are as follows: 

• The supplier must have a standard or enterprise Ariba Account
• The supplier's Ariba Account must be linked with Google's Ariba Account (i.e. PO must have been sent and received by the supplier since October 28, 2019)
• The supplier must be based in a country where Dynamic Discounting is currently active.
• There are exceptions for the above criteria so if you do not see any discount offers in your Ariba portal and you believe you qualify, please reach out to [e-mail]

I have more questions - where do I go next?

Please email us using the Contact Us button below and we will get back to you as soon as possible!

Early Payment Program - Sliding Scale Example

Example: In the case of a 4% discount, if the 15-day discount term is not met, the discount is calculated on a prorated scale and will decrease proportionally, according to the date the payment is made.

If the invoice is approved after the initial 15 days but before the 60th day deadline, say, on the 45th day, the discount will change proportionally; in this example, to 1%.

Note: This example is illustrative and does not reflect Google’s early pay offer sliding scale. The actual amounts are presented at the time of early payment offer.