22 Apr Dynamic Discounting – A Peoplesoft Upgrade Might Just Make Sense
In the depths of a recession, discretionary spend is the first targetfor cost avoidance and Enterprise application upgrades are easy to avoid. But if your organization uses PeopleSoft Financials 8.8, 8.9 or 9.0, an upgrade to 9.1 might just make sense as a means of avoiding cost.
PeopleSoft Enterprise Financial Management Solutions 9.1 focuses on improvements to period close, cash management and financial control and, importantly, introduces Dynamic Discounting and now is exactly the right time to take advantage of it.
Dynamic Discounting offers buyers an opportunity to generate over 30% return on capital. And you struggle to justify the cost of an upgrade? You can’t afford not to take a piece of this.
About Dynamic Discounting in PeopleSoft eSettlements 9.1
Organizations continue to look for ways to improve their cash management, optimize their working capital and a key area to focus on is recognizing discounts on liabilities. Suppliers are now making this even more attractive by offering more discounts for early payments.
Dynamic Discounting in PeopleSoft eSettlements 9.1, enables suppliers to offer automated discounts for buyers who elect to pay their invoices early. Both suppliers and buyers can benefit from this new feature. Whereas suppliers have always had the option to sell receivables to factoring companies or other lenders, Dynamic Discounting eliminates the need for third-party intermediaries, giving suppliers more direct access to funds. Suppliers gain greater control over their invoicing policy and can better manage their receivable-based working capital by reducing their day sales outstanding (DSO) and ensuring on-time payment by giving buyers an incentive to pay invoices sooner.
From a buyer perspective, Dynamic Discounting offers the ability to recognize additional discount rates thus reducing the liabilities on the balance sheet and costs on the P&L.
The discount analysis tool in PeopleSoft eSettlements 9.1.is designed to assist the supplier and buyer by searching for scheduled payments, creating or accepting offers with the least discount for the capital required by a given date. This allows the supplier or buyer the ability to analyze their working capital and attempt to create better offers and accept offers that support their working capital objectives.