Early Payment Offers (EPOs)

Early Payment Offers (EPOs)

Agenda Abut Early Payment Offers Discunting explained FAQs Wh t cntact

Abut Early Payment Offers (EPO) EPOs allw yu t be paid early in exchange fr a sliding scale discunt (calculated daily) EPOs give yu greater cntrl ver yur cash flw Rates typically lwer rates than many alternatives (e.g., P-Card, asset-based lending, bank lines f credit) EPOs dn t impact any individual payment terms which may be in yur cntract These ffers are cmpletely ptinal Yu can accept n an invice-by-invice basis Adjust yur settings in Ariba t receive ntificatins f EPOs If yu dn t want t accept the EPO, and want t cntinue being paid as usual, yu can simply ignre the ffer 3

Hw it wrks 1. N change t the current prcess; yu cntinue t receive rders and submit invices thrugh Ariba 2. Once an invice is apprved an EPO will be available in Ariba 3. If yu have adjusted yur settings in Ariba, yu will be ntified f the EPO 4. I yu haven t adjusted yur settings yu can navigate t the Early Payments tab t see the details f the EPO 5. Yu can either ignre the EPO r pick ne f the prpsed Early Payment dates and the crrespnding Discunt 6. Payment f yur invice will be scheduled accrding t the ptin yu chse 7. If yu d nt chse an EPO yur invice will be paid as usual

Percentage discunt Discunting explained Discunts are based n the difference between the scheduled payment date and the early payment date selected. The calculatin takes the apprpriate $ discunt rate and the number f days difference. 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Discunt based n sliding scale t payment date 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Days t payment The earliest discunts can be taken is day 2 due t +/- prcessing time

Ntificatins In rder t receive the ntificatin when BC Hydr sends an Early Payment Offer yu must ensure yur accunt ntificatins are enabled Lg int yur accunt Enter yur Username and Passwrd Click Lgin If yu cannt lgin t yur Ariba accunt, cntact Ariba s Help Center fr assistance

Ntificatins On the Hme Page, lcate the Cmpany Settings Drp Dwn Menu in the upper right crner f the screen Frm this menu, select Accelerated Payments under Netwrk Settings at the bttm f the menu If yu d nt have this ptin, yu must cntact yur accunt administratr t either perfrm the steps fr yu, r change yur access s yu can perfrm the tasks

Ntificatins There are tw ntificatins that must be enabled: checked as shwn in the screen sht Once checked enter the email address where the ntificatin shuld be sent Enter up t three email addresses per ntificatin: separate the email addresses with a cmma - n space Click Save at the tp r bttm f the page Click Clse t return t the previus screen Nte: Bth ntificatins shuld be checked althugh BC Hydr will nt be using Standing Early Payment Offers This will allw yur rganizatin t receive ffers frm ther Buyers yu may be cnnected with nw r in the future

Receiving and Accepting Offers

Lcating Early Payment Offers When BC Hydr sends an early payment ffer, the designated cntact (s) will receive an email letting them knw. T view the ffer, lg int yur accunt Frm the Hme Page, click Inbx and then Early Payments Yu will see all ffers sent by BC Hydr n this screen This view prvides the invice number, days remaining, invice amunt and the discunt detail

Viewing Early Payment Offers T see details n the ffer click n the Payment ID number in the first clumn This will pen the ffer A detailed schedule based n a payment date and the applicable discunt that wuld be taken if the invice is paid n that date will display The later the payment date the less the discunt will be 12

Early Payment Offers - Schedule What the data present means: Payment Date (Blue): the date that was selected fr payment n the supplier side Settlement Date (Green): the date the payment wuld be actually made based n the payment date selected Scheduled Payment Date (Red): the riginal payment date which is the date the invice wuld be paid if n early payment is selected; i.e.; the payment date in accrdance t yur standard terms with BC Hydr IMPORTANT NOTE: The settlement date will always be the payment date selected + a minimum f number f prcessing days If the payment falls n a weekend day, it will add 1 r 2 days t the verall days t payment as n payments are executed ver the weekend If the payment date falls n a hliday, that wuld als add t the verall days t payment as n payments are executed n hlidays 13

Accepting Early Payment - Offers Select a payment date then click Accept Early Payment Offer If a payment date is nt selected, an errr message will shw that ensures this step has been taken befre accepting the early payment ffer This will trigger an acceptance dcument t be sent t BC Hydr s that the payment can be prcessed and paid by the date selected If yu d nt wish t accept the ffer, simply click Dne at the tp f the page t clse the ffer withut actin 14 Errr if a payment date is nt selected befre accepting the ffer

Cnfirmatin f Offer - Accepted After accepting an ffer, a cnfirmatin page will display This will prvide the details f what was just selected and accepted Click Dne t finish the acceptance prcess Yu will be returned t the list f ther Early Payment Offers if yu wish t cntinue reviewing ther ffers Nte: Once an Early Payment Offer is accepted by a supplier it is transmitted t BC Hydr 15

Viewing Scheduled Payments T review yur scheduled payments and upcming payment dates click n yur Inbx and then Scheduled Payments All scheduled payments will be listed with infrmatin fr the payment; invice number, payment date, days remaining until payment and the amunt T review the detail f a particular scheduled payment, click n Payment Prpsal t pen 16

Cash Optimizer The Cash Optimizer is a tl that will suggest which EPOs t take (acrss all f yur clients) t receive a defined amunt f capital by a certain date (Wrking Capital). Enter the amunt yu need int Wrking Capital Needed Enter the Need by Date Click n Recmmend Based n yur criteria and the invices available fr EPOs (acrss all clients that use this Ariba feature), Ariba will present a list f suggested discunts t give yu yur targeted Wrking Capital Needed $20,000.00 CAD 10 May 2016 Example result n next slide 17

Cash Optimizer After clicking Recmmend the cash ptimizer tl allws yu t acquire the capital yu need by the date yu need it in a way that is mst beneficial t yu Under Recmmended Early Payments, yu will see the invices recmmended fr early payment with the least amunt f discunt, that will still prvide yu with the amunt f capital yu need By selecting invices fr early payment, yu can cnvert a receivable int cash rather than affecting yur bttm line r credit rating thrugh ther methds such as a lan 18

Setting up aut-acceptance f EPOs Yu have the ptin f determining parameters under which all EPOs will be autmatically accepted EPOs that d nt fit the parameters yu define will still be available fr ptinal manual review and acceptance T access these settings click n Cmpany Settings then n Accelerated Payments Chse the Settlement tab and click n Create under Supplier Aut Acceptance Rule Yu can als manage all the rules yu set up, including deleting them 19

Setting up aut-acceptance f EPOs 20 Yu can nw define the parameters under which yu are willing t autmatically accept EPOs The rules yu define here will apply t all f yur clients Enter a Name and Descriptin fr this rule Enter the start and end dates fr which this rule is valid Enter the lwer and upper limits fr the transactin amunt Enter the lwer and upper limits fr the APR amunts Chse Yes under Active? T make the rule effective frm the mment yu press OK Remember yu can later edit r delete rules yu create

FAQ 1. I have cntractual terms with BC Hydr, reflected in my invices. Will EPOs affect my individual payment terms? N they will nt 2. D I need t change the way I invice t take advantage f EPOs? Nt if yu are already sending yur invices thrugh Ariba 3. Which invices are eligible fr a discunt? All apprved invices are eligible fr discunt The last date a discunt can be taken is n the 27th day f yur net 30 payment term 4. Is the discunt fixed? Once yu accept an EPO, the discunt rate will nt change 5. I dn t want t manually review every EPO. Yu can set up aut-acceptance rules in Ariba based n the APR yu are willing t accept It als allws yu t define limits t dates and values 21

Wh t call Invicing, Payment and Early Payment Offers (EPOs) Questins Accunts Payable Helpdesk 604 663 3572 AccuntsPayable@bchydr.cm Step by step instructins Business Prcess Issues Cancelled invice Order nt in Ariba Invice nt paid Need a wrk inspectin Ariba Netwrk Accunt Issues The Supplier Infrmatin Prtal Frm yur hme page click n the Cmpany Settings drp dwn menu, under Accunt Settings select Custmer Relatinships Frm the Custmer Relatinship page and the Current Relatinships tab click n Supplier Infrmatin Prtal Yu will find training vides, tip sheets and guidelines Yur BC Hydr representative Cntact the persn wh rdered the wrk / the invice apprver / yur BC Hydr rep Frm Supplier Lgin page click n Help Center in the upper right crner Frm the drp dwn menu click n Supprt in the bttm right crner Frm the Supprt Center yu can enter a request fr a phne call r an email r participate in a live chat with an Ariba representative Frgt yur user name r passwrd 22 Supplier Lgin page Click; Having truble lgging in? Fllw the steps as prmpted