Savings to the bottom-line through early pay discounts

Procurement works hard to negotiate discounts with suppliers, but even at best-in-class enterprises, a significant portion of invoices do now match contracted pricing. Further, lengthy manual processing cycles mean that most invoices are not approved and ready to pay within the discount window. Research shows that companies using traditional paper processes leave, on average, between 1.6% and 2% of total invoice amounts “on the table,” in missed discounts.

ADP’s electronic order, receipt and invoice adjudication and automated workflow reduce approval times by up to 80%, allowing you to capture more available discounts. Taking it further, ADP’s dynamic discounting capabilities allow you or your suppliers to dynamically change standard terms to accelerated payment using a sliding discount scale, driving incremental discounts. The solution allows you to automatically upload the discount to your ERP system when approval parameters are met.

Increase capture of pre-negotiated early pay discounts:

• Leverage our electronic invoicing and workflow capabilities to significantly compress your processing cycles
• Built-in reminders, alerts and escalation procedures ensure that invoices are approved in a timely manner
• Easily see invoices that have discounts associated with them and prioritize them for approval

Leverage dynamic discounting for incremental discounts:

• Easily activate or deactivate the program, configure annual discount rates, minimum and maximum amounts for discounting and populate legal agreements
• Make early payment offers online for approved invoices without the need to negotiate new payment terms
• Buyers are in total control of determining the invoices against which discounts can be offered to suppliers
• Suppliers have the flexibility of choosing whether or not to accept the discount and can control payment timing
• Buyers can choose to self fund the early payments or leverage external financial institutions based on their cash positions
• Extend your days payable outstanding (DPO) while allowing your suppliers to decrease their days sales outstanding (DSO)