This topic describes the systematic instruction to create discount rate rules on behalf of supplier or buyer and link them to instruments such as invoices and debit notes..

Dynamic Discount

1. On Home screen, click Receivables And Payables. Under Receivables And Payables, click Dynamic Discount Management.
   The Dynamic Discount step in the Dynamic Discount Management screen displays.

   Figure 7-1 Dynamic Discount

   
   

   
   Description of "Figure 7-1 Dynamic Discount"

   
   
2. Specify the fields on Dynamic Discount step to create a discounting rule.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 7-1 Dynamic Discount - Field Description

   Field Name	Description
   Discount Rule Description	Specify a description for the discount rule. This field cannot be modified once authorized.
   Requestor Party Role	Select role of the requestor party as buyer or supplier.
   Buyer	Click the search icon and select the buyer party. This field is displayed only if Requestor Party Role is selected as Buyer.
   Supplier	Click the search icon and select the supplier party. This field is displayed only if Requestor Party Role is selected as Supplier.
   Relationship	Click the search icon and select the relationship code of the requestor party.
   Counter Party Role	Counterparty is auto-populated based on selected requestor party role.
   Buyer	Click the search icon and select the counterparty. This field is displayed is auto-populated based on  selected requestor party role.
   Supplier	Click the search icon and select the counterparty. This field is displayed is auto-populated based on  selected requestor party role.
   Effective Date	Click the calendar icon and select the date from when the discount template takes effect.
   Expiry Date	Click the calendar icon and select the date till when the discount template can be used.
   Discount Type	Select whether the discount should be fixed or tenor based.
   Discount Rate	Specify the rate of discount. This field is displayed only when ‘Fixed Discount’ is selected as the discount type.
   Currency	Select the currency of the instrument to apply the discount rule to.
   Instrument Amount From	Specify the starting amount of the range for the instrument. The discount rate is applied to those instruments whose amounts are greater than or equal to the specified amount.
   Instrument Amount To	Specify the ending amount of the range for the instrument. The discount rate is applied to those instruments whose amounts are less than or equal to the specified amount.
   Min Tenor	Specify the minimum tenor for the instrument.
   Max Tenor	Specify the maximum tenor for the instrument.
   Auto Applicable	Switch the toggle ON if the discount rule should be applied automatically to eligible instruments, once created and authorized.
   Applicability Basis	Select the basis for applicability of the discount rule. The options are: Pay by Date Fixed Payment Date Both This field is editable only if the Auto Applicable toggle is disabled.
   Auto Applicable Basis	Select the basis for auto-applicability of the discount rule. The options are: Pay by Date Fixed Payment Date This field is editable only if the Auto Applicable toggle is enabled.
   Early Payment Date	Click the calendar icon and select the date for early payment. This field is displayed only when value for ‘Auto Applicable Basis’ is selected as ‘Fixed Payment Date’.
   Grid	This grid is displayed only if the selected discount type is ‘Tenor Based Discount’.
   Add	Click Add icon to add the tenors and their respective discounts.
   Elapsed Tenor From	Select the number of days from the start of the tenor after which the discount offer should be applicable.
   Elapsed Tenor To	Select the number of days from the start of the tenor up to which the discount offer should be applicable.
   Sliding scale applicable	Switch this toggle ON, to enable a sliding discount rate. Specify the upper and lower discount rate thresholds if this toggle is enabled.
   Discount Rate	Specify the discount percentage. This column is displayed only if the Sliding scale applicable toggle is disabled.
   Upper Discount Rate Threshold	Specify the upper discount percentage applicable for the sliding rate.
   Lower Discount Rate Threshold	Specify the lower discount percentage applicable for the sliding scale.
   Action	Displays the following options to edit or delete the tenor record. Click Edit to edit a row. Click Delete to remove a row.

3. Perform any of the below action from the Dynamic Discount step.
   • Click Next to go to the Receivables Linkage step.
   • Click Cancel to cancel the creation of the discounting rule.

Receivables Linkage

This step displays a list of instruments that are eligible for discount rule linking.

4. Click Next on Dynamic Discount step.
   The Receivables Linkage step displays.

   Figure 7-2 Receivables Linkage

   
   

   
   Description of "Figure 7-2 Receivables Linkage"

   
   
5. Specify the fields on Receivables Linkage step.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 7-2 Receivables Linkage - Field Description

   Field Name	Description
   Discount Rule Description	Displays the description of the discount rule being created.
   Requestor Party	Displays the name of the requestor party.
   Counter Party	Displays the name of the counter party.
   Relationship	Displays the relationship code associated with the requestor and counter parties.
   Effective Date	Displays the date from when the discount rule is effective.
   Expiry Date	Displays the date up to which the discount rule is effective.
   Discount Type	Displays the type of the discount, whether fixed or tenor based.
   Auto Applicable	Displays Y if the discount rule is to be applied automatically, and N otherwise.
   Applicability Basis	Displays the basis of discount applicability, if Auto Applicable is N.
   Auto Applicable Basis	Displays the basis of discount applicability, if Auto Applicable is Y.
   Search fields	This section displays various fields to search for instruments like invoices and debit notes, to link to the discount rule.
   Reference Number	Specify the unique reference number to search for instruments.
   Program	Click the search icon and select the program to search for instruments.
   Payment Status	Select the payment status to search for instruments.
   Date Reference Basis	Select the date reference basis to search for instruments based on a specific date, such as date of creation of the instrument, or due date, and so on.
   Date Range	Click the calendar icons and select the start and end dates for the date range search.
   Currency	Select the currency to search for instruments.
   Amount Reference Basis	Select the amount reference basis to search for instruments based on a specific amount, such as acceptance amount, financeable amount.
   Amount From	Specify the lower limit for the amount range search.
   Amount To	Specify the upper limit for the amount range search.

6. Once you specify the search criteria, Click Search to search the receivables records.
   The list of receivables records displays.

   Table 7-3 Receivables Linkage - Field Description

   Field Name	Description
   Reference Number	Displays the reference number of the instrument. This is a hyperlink which when clicked displays the details of the instrument.
   Currency	Displays the currency of the instrument.
   Receivables Amount	Displays the instrument amount.
   Issue Date	Displays the date of issue of the instrument.
   Due Date	Displays the due date of the instrument.
   Outstanding Amount	Displays the amount which is yet to be paid.
   Total Instruments	Displays the total number of instruments selected, for linking the discount rule to.
   Total Amount	Displays the total outstanding amount of the selected instruments.

7. Select the receivables record to link the discount rule to.
8. Perform any of the below action from the Receivables Linkage step.
   • Click Next to go to the Summary step.
   • Click Back to go to the Dynamic Discount step.

Summary

9. Click next on Receivables Linkage step.
   The Summary screen displays.

   Figure 7-3 Summary

   
   

   
   Description of "Figure 7-3 Summary"

   
   

   Table 7-4 Summary - Field Description

   Field Name	Description
   Discount Rule Description	Displays the description of the discount rule being created.
   Requestor Party	Displays the name of the requestor party.
   Counter Party	Displays the name of the counter party.
   Relationship	Displays the relationship code associated with the requestor and counter parties.
   Effective Date	Displays the date from when the discount rule is effective.
   Expiry Date	Displays the date up to which the discount rule is effective.
   Discount Type	Displays the type of the discount, whether fixed or tenor based.
   Auto Applicable	Displays Y if the discount rule is to be applied automatically, and N otherwise.
   Applicability Basis	Displays the basis of discount applicability, if Auto Applicable is N.
   Auto Applicable Basis	Displays the basis of discount applicability, if Auto Applicable is Y.
   Reference Number	Displays the reference number of the instrument. This is a hyperlink which when clicked displays the details of the instrument.
   Relationship	Displays the relationship associated with the parties involved.
   Payment Status	Displays the payment status of the instrument.
   Currency	Displays the currency of the instrument.
   Receivables Amount	Displays the instrument amount.
   Issue Date	Displays the date of issue of the instrument.
   Due Date	Displays the due date of the instrument.
   Outstanding Amount	Displays the amount which is yet to be paid.

10. Review the details of the discount rule being created and perform any of the following action from the Summary screen.
    • Click Submit to save the discount details and submit it for authorization.
    • Click Back to go to the Receivables Linkage screen.