Traditional Culture Encyclopedia - Traditional culture - What is dynamic discount? What are the differences from the traditional cash discount?
What is dynamic discount? What are the differences from the traditional cash discount?
dynamic discount converts accounts receivable with different maturity dates into a unified daily discount rate, and can calculate the payment amount after discounting accounts payable with different maturity dates. Compared with (static) cash discount, dynamic discount provides a more flexible way of trade discount, allowing buyers to pay suppliers more quickly, so as to obtain the best discount for purchasing goods and reduce procurement costs. Wenli dynamic discount can be divided into three modes, namely: discount on schedule, discount by order and instant discount.
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