Set Early Payment Discounts Preferences: After Invoice Approval

Early Pay Discounts User Guide: After Invoice Approval

Early Pay Discounts: After Invoice Approval enables you to receive early payments by offering customers discounts on approved invoices.  By incentivizing early payments, you enhance your working capital.

This guide shows the basics of configuring your Coupa Supplier Portal (CSP) so that you can opt in to After Invoice Approval with your Coupa customers.

Your customer can enroll you in either or both Before and After Invoice Approval discount programs. To enable Before Invoice Approval, including information on registering as a new supplier on the CSP, see Early Pay Discounts User Guide: Before Invoice Approval for Suppliers.

For more information on Early Payments in the CSP, see How do Early Pay Discounts (EPD) work?

Use Early Payment Discounts on Approved Invoices

If your Coupa customer wants to use Early Pay Discounts with you, they can enroll you in an After Invoice Approval early payment program in their Coupa instance, which sends you a notification that you've been enrolled. This allows you to offer your customer discounts on eligible approved invoices in exchange for them paying the invoice sooner than it is due, increasing the amount of working capital that you have at your disposal. You choose the discount percentage you offer your customer for eligible approved invoices, which lets them decide whether they want to pay early to receive the discount.

Once you are enrolled in the After Invoice Approval discount program, you can start sending early payment requests to the customer who enrolled you. If you want to automate the sending of early payment requests, you can enable the Auto Discount setting.

Review Invoices Eligible for Early Payment

You can review the invoices you are eligible to request early payment for by going to Payments > Early Payments.

The Invoices table below the tiles shows you the invoices that you can submit for early payment.

See and Use the Status of Eligible Invoices for Early Payment Requests

You can filter for and see the status of an eligible invoice in the table:

• Eligible: Invoice is available for you to submit for an Early Payment Request for a discount.
• Submitted: Invoice submitted for early payment discount and pending customer's decision. This is a transitional state that should change within a few seconds.
• Pending Review: Invoice submitted and is pending customer's review. An invoice in this status will expire at the end of the next business day if your customer doesn't act on it.
• Accepted: Invoice submitted for early payment discount and accepted by the customer.
• Paid Early: Invoice submitted for early payment discount, accepted, and paid early by the customer.
• Expired: Invoice submitted for early payment discount, but the customer didn’t review it by the end of the following business day. You can re-submit it again for early payment.
• Invalid: Invoice is no longer eligible for discount based on the customer's early payment program settings.
• Rejected: Invoice submitted for early payment discount but rejected by the customer. You can re-submit it with a different offer.

When you select the Get Paid Faster option from your customer's GET PAID EARLY email or from the Invoices table on Early Payments, the CSP navigates you to the Payment Request Details screen that shows you more information about the request.

Payment Request Details

Submit an Early Payment Request

1. Go to Payments > Early Payments.
2. In the Eligible Invoices table, select the invoice(s) with an Eligible status that you want to submit for early payment by clicking the the Get Paid Faster  icon. You can select multiple invoices if they have the same due date.
3. In the Payment Request Details table, enter the discount percentage you want to offer your customer in the Rate field under Cost for Early Payment.
4. Click Submit.
5. If the Rate that you offer matches your customer's offer, you get an Accepted notification under the Expected Payment Date for the invoice.
6. If your rate does not match your customer's, you get a rejection notification. You can then change your Rate under Cost for Early Payment and resubmit it.

Enable Auto Discount

If you want to take advantage of every discounting opportunity for all your invoices, you can activate the Enable Auto Discount feature. This will automatically discount all future invoices. The discount Rate and Cost for Early Payment are then automatically based on how early you get paid.

If you have the Admin permission in the CSP, you can configure auto-discounting for invoices from After Invoice Approval discount programs. The invoices are then automatically approved.

1. Go to Payments > Early Payments.
2. From the data table, select Enable Auto Discount.
3. All future approved invoices will be automatically submitted for discounting. The discount Rate and Cost for Early Payment are then automatically based on how early you get paid.
   
   

Use Credit Notes on Approved Invoices

To account for an early payment discount on an approved invoice, many countries require you as a supplier to issue a credit note to to the buyer. Coupa makes this process easier by creating a draft credit note for you when early payment is made by the buyer. This credit note is helpful for both you and your Coupa customer to balance out your invoiced and paid amounts.

For more information, see Use Credit Notes for Discounts on Approved Invoices.

FAQ and Troubleshooting

Why wasn't my early payment request accepted automatically?

If your early payment request didn't meet discount thresholds your customer set in their Coupa instance, your request goes into review status while it waits for your customer to review it.