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.
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
-
Revenue (ASC 606)
Discount captured as a reduction in cost of purchase, not financing income.
Connects to
- Vendor portal Self-service opt-in
- Xero Bidirectional sync of discount postings
- QuickBooks Native connector
Dynamic Discounting FAQ
What buyers ask.
What yield do teams typically achieve?
Deployed at scale, dynamic discounting yields a meaningful APR-equivalent on the cash deployed, depending on vendor mix and how aggressive the curve is. The deployment cap is set by the CFO, and the system never goes past it.
Which vendors does this apply to?
Any vendor who opts in voluntarily for an earlier payment in exchange for a discount. It runs alongside your normal payment terms rather than overriding them.
How is the discount posted in the books?
The discount posts as a reduction in the bill cost (under ASC 606), not as financing income. The discount creates a vendor credit in the ledger.
More in Accounts Payable
Related features
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.