SAP Dynamic Discounting

With Direct Insite’s PAYBOX® solution, buyers and suppliers can manage SAP dynamic discounting processes and coordinate mutually beneficial early payment terms from a single, secure AP automation solution.

With dynamic discounting, business buyers can extend their payment terms with third-party financing, while still receiving the applicable discount from suppliers for early settlement of invoices. This supports the cash management needs of both buyers and suppliers.  

Why SAP Dynamic Discounting is Important in the Enterprise

Effective discount capturing is a critical component of successful financial supply chain management. It improves cash flow and profitability by ensuring your organization captures every possible discount from suppliers. However, a large portion of enterprises using SAP technology still rely on paper-based accounts payable (AP) and invoicing processes.

This presents problems for buyer and supplier organizations, including operational inefficiencies, high processing costs and problems with inaccurate or incomplete information that compromises compliance with federal regulations and internal business rules. Without a comprehensive AP automation solution, organizations have little to no visibility into cash flow and discount capture trends, making it difficult to optimize the financial supply chain.

By automating key processes in AP workflows, SAP users can manage dynamic discounting more effectively and efficiently. SAP dynamic discounting solutions like PAYBOX® help enterprises transform their AP processes and gain significant business advantages, including: 

  • Real-Time Reporting and Monitoring: With a variety of real-time tools and analysis, Direct Insite’s PAYBOX® solution gives companies a complete view of their invoice and discount management activities, as well as long-term cash flow and discounting trends.
  • Improved Cash Flow: PAYBOX® makes discount capture easier and more efficient, while reducing the amount of missed discount opportunities. This optimizes cash flow and increases your return on enterprise SAP investments.    
  • Better Buyer-Supplier Relations: As a highly secure, user-friendly platform, PAYBOX® enables a smoother purchasing process for both buyer and supplier. Accuracy is significantly improved through automation, reducing the volume of discount inquiry calls and emails to suppliers. 
  • Lower Labor Costs: By transitioning out of a labor-intensive, paper-based AP department, organizations can dramatically reduce processing costs and the need for manual data entry.

Automating SAP Dynamic Discounting Processes for Business Advantage

Direct Insite’s PAYBOX® platform integrates seamlessly with your existing SAP enterprise environment and supports dynamic discounting. Buyers can submit payment term proposals and discount rate requests to suppliers for specific invoices through the SAP dynamic discounting solution on the PAYBOX® portal.

For suppliers, the portal provides complete visibility into invoices available for discounting, discount rate comparisons and capital sources. Suppliers can also accept a proposal or submit a counteroffer directly on the platform. This gives companies the flexibility necessary to renegotiate or offer dynamic discounting without requiring back and forth correspondence via email or paper-based communications.

Moving Forward with SAP Dynamic Discounting

As a certified SAP partner, Direct Insite works with leading Global 3000 companies, providing comprehensive solutions that optimize financial supply chains. Direct Insite’s PAYBOX® 3.0 platform is certified by the SAP Integration and Certification Center for use with SAP ERP 6.0 and other SAP Business Suite software.

To learn more about our comprehensive AP automation and management solutions for SAP users or to set up a private consultation, please call us at 954-510-3750.

SAP AP Automation Solutions