Dynamic Discounting: It’s Time to Start Earning Accolades
It’s tough to work in an office that gets little respect. The triumphs of other departments like Sales or Research and Development get trumpeted throughout the company: their accomplishments are palpable and highly visible, and they even get plaques, trophies, and write-ups in the company newsletter! Accounts payable on the other hand… well, they just pay bills. A necessity to be sure, but nothing as sexy as a record-breaking sales quarter.
Why not change all of that and be the hero for once?
iPayables’ AP automation solution, InvoiceWorks®, is the solution. InvoiceWorks® is more than an electronic invoicing system, it’s a comprehensive system that does a lot more than free up staff from the drudgery of dealing with paper invoices. With InvoiceWorks®, your AP department can actually affect the company’s bottom line by utilizing its innovative Dynamic Discounting.
Dynamic Discounting, also known as early pay discounts, is a flexible way that vendors and AP departments can adjust target dates and corresponding discount percentages. It used to be that vendors and buyers negotiated a discount for paying invoices ahead of their due date, then added it to a long-term contract, however, vendors didn’t always like being locked in an inflexible discount scheme, which could affect their ever-changing capital needs. Dynamic Discounting resolves that problem. With Dynamic Discounting, the vendor can log into its InvoiceWorks® account and choose either the Dynamic Discount date or its own discount target date. Then, Dynamic Discounting does the rest, posting the target and calculating the discount for beating the posted date.
Plus, it’s easy to beat those deadlines with InvoiceWorks®. Under the old paper invoice system, AP departments struggled every month just to get bills paid on time – never mind early. An invoice could travel from one department to the next for days, even weeks, seeking approval signatures and Purchase Order matches. Often, they got lost on someone’s desk or simply disappeared like a sock in the laundry. With InvoiceWorks®, it’s all done electronically, instantly, and visible to everyone that needs to be involved. Vendors, purchasing agents, and everyone else with a stake in the process all have real-time access to the account so they can see what’s happening at any given moment.
How does this affect your AP department? Aside from the obvious savings in time and money, InvoiceWorks® gives you the opportunity to add substantially to your company’s bottom line. Many companies now using InvoiceWorks® are already touting this achievement – some of the same companies that once had to eat late-pay penalties.
Imagine being able to report that you slashed cash outlays to vendors. That this or that department agreed to pay a certain amount to a vendor, but you – yes you, AP – paid less. Now who’s the hero?