Remember the days when we used to have our money work for us? In today's economy with extremely low interest rates, this doesn’t really work any longer.
At one end, money is idling in a bank account, but due to the current situation it’s not really yielding a return in the form of interest.
At the other end, even if money is currently cheap, companies often don’t get it from their banks when they need it for a short timeframe to cover a cash bottleneck.
Let’s have a deeper look on both sides of the coin
At one end, Stephan, the Accounts Payable Manager in a mid-size corporation, is informed by his treasurer that there is some cash available to work with. So he is in a position to offer his vendors to pay their invoices earlier – and thus earn additional cash discounts.
At the other end, Julia, an Accounts Receivable Manager at a vendor, has a KPI on getting outstanding money in as soon as possible. And several times a year she is getting additional pressure to help solving some short-term cash bottleneck. But getting all the customers on the line to make a special agreement for every individual invoice is really time consuming and not very promising.
How can this be turned into a win-win-situation for both sides?
Stephan, the Accounts Payable Manager of one of Julia’s biggest customers, makes a great offer:
Julia is allowed to flexibly shorten the payment date of her invoices depending on her cash flow requirements. This gives Julia the tool to meet her KPI’s and help her boss to resolve cash flow bottlenecks.
Deal!
And what’s in for Stephan?
In times of good cash flow he can earn additional discounts and create additional revenue by paying earlier. The Effort equals Zero as everything runs automatically!
Watch the video to see how this can work for you:
With the integration of SAP S/4HANA Finance and Ariba Discount Professional, you have a fully automated process available to create a win-win-situation. It’s not just a combination of tools that provide fast and automated invoice processing – it can create additional revenue for your organization and simultaneously help your supplier out of their financial squeeze and meet their KPIs.
SAP S/4HANA Finance and Ariba Discount Professional help both companies run better!
