Use Early Payment Discounts: Before Invoice Approval

Early Payment Discounts: Before Invoice Approval helps you get paid earlier by allowing you to set and update preferred payment discount terms.

If your Coupa customers (buyers) enable discounts Before Invoice Approval, you can apply your preferred terms automatically to all or selected buyers across some or all of your purchase order-backed invoices. Your buyers can also set payment terms specific to you.

You receive notifications in the Coupa Supplier Portal (CSP) from buyers who are ready to accept early payment discount offers. You can set your payment terms directly from the CSP notifications or accelerate the payment for a discount from a purchase order (PO) email.

You can change a net payment term (for example, Net 90) to a discount payment term (for example, 3%/30 Net 90).

For more information, see Early Payment Discounts.

Offer Before Invoice Approval discounts

When a Coupa buyer issues a purchase order, you will be notified by email. You also see the order in the CSP. You can then offer a discount either from a purchase order (PO) or a PO-backed invoice. Depending on your Early Payment Discount (EPD) settings in the CSP, your invoice from a buyer may be discounted manually at the transaction level, or automatically for all invoices (global).

Manually accelerate an individual payment (transaction level)

When Apply preferred terms to all PO/invoices is set to No in your Customer Preferences, you can use the manual Get Paid Faster function for the buyer:

1. From the PO notification email from Coupa, select Get Paid Faster to go directly to the CSP login.
2. After you log in, the Early Payments dialog opens, where you see the Current Payment Term (for example, Net 90) and a dropdown menu with one or more discounted New Payment Terms (for example 3%/30 Net 90). Only those payment term options are visible that have the same net payment terms as your preferred discount terms.
   
   
   Note

   If you update payment terms on a purchase order, they cannot be reversed. If you decide you do not want to opt in for the early payment discount term, you must request a new purchase order and change the terms there.

   
3. You can either select the discount term in the dialog, or return to the invoice if necessary and then select the Get Paid Faster button in the invoice, next to the Payment Term field.
   
   
4. In the Early Payments dialog, select the checkbox I am authorized to choose payment terms, and then Update.
5. A pop-up window opens to ask if you want to update your default early payment discounts on all future orders and invoices with the specific customer. If you select Update, your Early Payment Discount preferences open for this customer.
   
   
   Note

   Customer-specific payment term preferences override default customer preferences.

6. Select Submit when you are ready to send the discounted invoice.
7. You see the confirmation message: Congrats! You have discounted payment for invoice #. The new payment term is applied to your invoice.
8. The invoice status changes to Pending Approval and the invoice is sent to your Coupa buyer.

When a discount payment term is applied to a PO or an invoice, that payment term is available on the PO/invoice and it has a Terms updated to get paid faster notification. You are notified of the action in the message bar and the change is recorded in the History section of the CSP.

Automatically accelerate all payments (offer a global discount)

If you have enabled preferred discount payment terms by default for all invoices or for a specific buyer, your invoices will be automatically discounted when they match a buyer's preferred terms:

1. In the CSP, go to Invoices or Orders. If you have more than one Coupa customer, use Select Customer to see your specific buyer's invoices.
2. Select Create invoice from PO and then enter the invoice number relevant information.
3. Under General Info, you see the Terms updated to get paid faster info message instead of the Get Paid Faster button.
4. The discount is automatically assigned to the transaction.