Accounts Payable Discounts: Enabling Contributions to Working Capital



Turn the back office function of accounts payable into a significant contributor to working capital. Usually, taking the discount is based on the AP invoice amount when scheduling payments. The smaller the invoice amount due, the less inclined AP managers are to pay early. But when AP managers view discounts based on the annual billings of the supplier, the subsequent savings should have the bigger impact on AP disbursement scheduling. And in terms of working capital, the cost of money today is less than the cost of money tomorrow.

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