Step 01
Vendor opt-in
Vendors opt in through the self-service portal with their preferred discount curve. No awkward calls; no spreadsheet-driven negotiation.
Accounts Payable | Dynamic Discounting
Pay early, pocket the discount. Sliding scale by days-to-pay.
Vendors opt in via the portal. The discount curve runs from full term to early-pay. APR-equivalent yield shown per offer. Cash cost per acceptance computed in real time. CFO sees both sides before approving the cap.
How it works
From vendor opt-in to early-pay yield.
Step 02
Discount engine runs
The engine prices each approved bill against the curve. Early-pay discount, APR-equivalent yield and cash cost shown per offer.
Step 03
CFO sets the cap
A daily or weekly cap on cash deployed for early pay. The system fills against the cap by yield, surfacing the deployed amount and remaining capacity.
Step 04
Captured at scheduling
Accepted discounts captured at the bill at scheduling time. The discount posts to the books as a vendor credit; the payment fires at the discounted amount.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Vendor opt-in portal | Vendor self-service + discount curve | Vendor enrolled with curve |
| Discount engine | Approved bill + days-to-pay + curve | Discount amount + APR yield |
| Cash cap deployment | CFO daily / weekly cap | Auto-fill by yield until cap |
| Audit trail | Offer + acceptance + posting | Hash-chained evidence per offer |
-
Vendor opt-in portal
- Input
- Vendor self-service + discount curve
- Output
- Vendor enrolled with curve
-
Discount engine
- Input
- Approved bill + days-to-pay + curve
- Output
- Discount amount + APR yield
-
Cash cap deployment
- Input
- CFO daily / weekly cap
- Output
- Auto-fill by yield until cap
-
Audit trail
- Input
- Offer + acceptance + posting
- Output
- Hash-chained evidence per offer
Compliance + integrations
A capital decision, captured like one.
Dynamic discounting deploys working capital. Every offer, acceptance and posting is captured for treasury audit and IT scrutiny.
Regulations we work within
-
AS-9 / Ind-AS 18
Discount captured as a reduction in cost of purchase, not financing income.
-
Rule 11(g), Companies Act
Offer and acceptance captured with edit trail.
Connects to
- Vendor portal Self-service opt-in
- Tally Prime Bidirectional sync of discount postings
- Zoho Books Native connector
Dynamic Discounting FAQ
What buyers ask.
What yield do teams typically achieve?
On a typical Indian B2B portfolio, dynamic discounting deployed at scale yields 8 to 12% APR-equivalent on cash deployed, depending on vendor mix and curve aggressiveness. Cap deployment is set by the CFO; the system never goes past it.
Does this conflict with the MSME 43B(h) rule?
No. MSME bills are paid within the 45-day window regardless. Dynamic discounting applies to non-MSME vendors who opt in voluntarily for an earlier payment in exchange for a discount.
How is the discount posted in the books?
The discount posts as a reduction in the bill cost (per AS-9 / Ind-AS 18), not as financing income. The vendor's TDS section is unchanged. The discount creates a vendor credit in the ledger.
More in Accounts Payable
Related features
Payment Scheduling
Schedule batches by due date. MSME 43B(h) rule enforced. Take early-pay discounts. Bank rails for direct payment.
See Payment SchedulingVendor Payment Batches
NEFT/RTGS/IMPS/UPI rail selection with auto-fallback. Connected Banking integration. Status posted back.
See Vendor Payment BatchesMSME 43B(h) Compliance
Udyam status verified. 45-day rule at scheduling. Disallowance impact surfaced before override.
See MSME 43B(h) Compliance
See your dynamic discounting yield, free.
Run your last 90 days of bills through the curve. The system shows yield, cap deployment and the bills your CFO would have accepted, all in one screen.