Dynamic Discounting is a payment program that vendors can use to expedite payments for goods or services by offering a variable discount.
UCLA pays invoices based on credit terms established with vendors, usually NET 45 for invoices submitted via paper and payments issued by check or NET 30 for invoices submitted through established electronic means and payments received electronically. Payments can be permanently accelerated by offering standard discounts such as 2% 10 NET 30 or by accepting credit cards. Dynamic Discounting, however, lets vendors accelerate payments on an ad hoc basis. This is accomplished by changing the payment due dates for invoices that have already been successfully processed and are scheduled to pay within our standard terms.
The discount amount is calculated dynamically based on the number of days between the invoice date and the due date. For example, we ask for a 2% discount to change an invoice due date to 10 days from the invoice date, and a 1% discount to change it to 15 days from the invoice date. The discount percentage ranges from 0.25% to 5%; the greater the discount percentage, the earlier the payment.
We are offering this program to all vendors to facilitate faster invoice turnaround and expedited payments. Dynamic Discounting uses the same portal as the Vendor Invoice Portal (ViP). To sign up for Dynamic Discounting, please create a UCLA Logon ID and request access to the live site for the ViP.
UCLA Logon IDs can be created here: http://accounts.iam.ucla.edu
The live ViP site is: https://www.aps.it.ucla.edu/sws
Questions about the program can be sent to: vip@finance.ucla.edu
