What is dynamic discounting?

​Dynamic discounting is a system of payment that allows vendors to incentivize buyers to pay for orders sooner by offering time-sensitive discounts. For example:

Payment Date ​(invoice date + _ days)	Discount offered
Net 60 ​(payment due date)	0%
Net 45	2%
Net 30	3%

Benefits

...to Buyers

With an automated P2P system, you're processing invoices faster anyway; dynamic discounting allows you to turn your greater efficiency into better pricing.

...to Sellers

Extending dynamic discounts to your buyers results in a faster turnaround on payment; if cash-in-hand is of more value to you at the moment than higher margins, dynamic discounting can help.

Dynamic Discounting in The Order Hub

The Order Hub presents the invoicing vendor with a list of relevant discount options. 

The supplier can select any of the discount options to extend.

The buyer can accept the discount offer, or reject it and keep the original due date.

If the buyer accepts the offer, the Due Date is updated on the invoice.

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