Buyer Market Configuration
Introduction
DDRX platform provides different configurations for buyers to set marketplace interactions, invoice processing, supplier payment programs, and email notifications. These settings help buyers to automatically approve invoices and ensure timely supplier payments. Here, you can learn the process of adding different configurations for the buyer in DDRX platform.
Note
Only a platform admin can add or update buyer configurations.
A checker approval is needed to successfully add or update buyer configurations.
How To Access On DDRX Platform
Platform Panel -> Buyers -> View/Edit (of desired buyer) -> Configuration
Steps to configure marketplace for buyer
The following sub-sections include steps for configuring the buyer marketplace in the DDRX platform. Click Edit to add the configurations. Once all configurations are added, click Update to save the changes.
Note
Fields marked with an asterisk (*) are mandatory. All other fields are optional.
Marketplace Configurations
These settings include timings for automatic processing, market cut-off times, and options for batch processing. Set up these configurations to align with buyer's business model and streamline the invoice approval process.
Auto-processing Start Time - Set a time for when the platform automatically begins processing the invoices. For example, if you set 15 hours and 0 minutes, then the auto-processing time is set as: present day at 09:00 AM.
Market Closure Cutoff - Set a time after which platform stops processing invoices for the upcoming payment date. For example, if you set 11 hours and 0 minutes, then the market closure cut-off time is set as: present day at 01:00 PM.
Market Approval Cutoff - Set a time by which buyers need to approve the processed invoices. For example, if you set 9 hours and 0 minutes, then the market approval cut-off time is set as: present day at 03:00 PM.
Market Auto Approval - Choose whether invoices are automatically approved. If you select No, then the buyer should manually approve the invoices raised for early discounting.
Batch Processing - Activate or deactivate batch processing using the options provided. Batch processing represents the platform processing invoices in a group as they become available.
Batch Processing End Time - Set up a time at which the uploaded invoices move to the batch generation scheduled for the next day.
Batch Processing Approval Duration - Set up the duration for the buyer to approve a batch when the batch processing is set to No. This configuration is only applicable to manual approval of the invoices.
Custom Payment Dates - Activate or deactivate custom payment dates using the options provided. If you select Yes, then the specific dates are considered as payment dates instead of all weekdays, which is a default behaviour of the platform.
Invoice Configurations
This includes options for fraud prevention, handling duplicate invoices, managing outdated invoices, and setting up specific validation rules. The configurations are designed to improve the efficiency and security of invoice processing.
Monetago Verification - Enable or disable MonetaGo verification for invoices. MonetaGo is a fraud prevention service. When enabled, invoices will be checked by MonetaGo before they are processed.
Duplicate SAP doc ID after Financial Year - Choose how platform should handle invoices with a duplicate SAP document ID after the financial year has ended.
Duplicate Invoice ID after Financial Year - Choose how platform should handle invoices with a duplicate invoice ID after the financial year has ended.
Stale Invoice - Choose how platform should handle outdated invoices.
Stale Invoice Period - Set the number of days after which an invoice is considered stale. This helps manage outdated invoices effectively.
Reject Invoice Post Bank Max Slab - Choose how platform should handle invoices, which lead to crossing the limit allocated to buyers by the bank.
Account Overdue - Choose how platform should handle invoices, when a buyer account is overdue.
E-way Bill Validation - Choose how platform should handle invoices based on the e-Way bill validations.
Checker Approval - Enable or disable the requirement for checker approval of invoices.
Vendor signup required for invoice upload - Enable or disable the requirement for suppliers to sign up for an account before buyer can upload invoices in the platform.
Vendor Level Adjustment Type - Choose how supplier-level adjustments are applied to invoices.
Invoice Upload Mechanism - Choose how invoices are uploaded to the platform.
Only Incremental - Uploading invoices in batches where each batch contains unique invoices.
Incremental + Modify - Uploading invoices in batches where a batch may have same invoices from the previous batch but with some modified attribute values.
Incremental + Modify + Delete - Uploading invoices in batches where a batch may have same invoices from the previous batch, but with some modified attribute values and some deleted invoice entries.
Program Configurations
This encompasses the setup for file transfers, supplier management, financial settings, and defining the workflow for processing payments.
File Integration Type - Choose the file transfer protocol for exchanging invoice files between the platform and buyer system.
FTP Url - Enter a website address of buyer's File Transfer Protocol (FTP) server if SFTP is chosen as the file integration type.
FTP ID, Password, and Directory - Specify the credentials and directory for the FTP server.
Vendor Status File Generation - Choose whether to generate a supplier status file. If so, platform generates the file, which contains a status of all active, inactive, and disabled suppliers, and sends it back to buyer's Enterprise Resource Planning (ERP) system.
Send Sign-up invitation - Choose when to send a sign-up email to a supplier.
After Vendor Upload - The platform sends the sign-up email to a supplier when the supplier is successfully added in the platform.
After Invoice Upload - The platform sends the sign-up email to a supplier when the invoices are successfully uploaded in the platform.
Week Off Days - Specify which days of the week are considered non-working days.
Generate Credable Fee Invoice - Specify the intervals of platform fee invoice generation.
Hurdle Rate Editable - Specify whether the hurdle rate can be edited. If so, the hurdle rate can be changed for a specific payment batch by the buyer user. The hurdle rate is a minimum acceptable interest rate.
Supplier Rate Renewal Type - Choose how supplier rates (interest rates offered by suppliers) are renewed. Manual is selected.
Funding Percentage - Enter the percentage of the invoice amount that should be funded. For example, if 80 is entered, then only 80% of the amount will be funded.
Funding Type - Specify the funding type.
Corp - The invoice amount is funded by the buyer.
Bank - The invoice amount is funded by the bank.
Hybrid - The invoice amount is funded jointly by both the buyer and the bank.
Payment Mode - Set up a mode of payment in which the invoice amount should be disbursed.
Direct - It refers to immediate payment of the invoice amount to a supplier.
Escrow - It refers to payment of the invoice amount through a secure third-party service. The service holds the payment until the buyer receives the purchased goods or services and is satisfied with the transaction.
Note
Read more about Escrow.
If you select Escrow, Financier Bank and Master Account No need to be added.
Enable DPO - Choose whether to activate Days Payable Outstanding (DPO). DPO is the average number of days a buyer takes to pay the invoice amount to its suppliers.
Note
Read more about DPO.
Minimum Acceleration for funding(> Days) - Set the minimum number of days after which any invoices would be eligible for a discount.
Add/Edit Treasury Funds - Choose whether to add or edit buyer's treasury funds, which are allocated by the buyer's treasury department to finance the early payment of approved invoices.
Hurdle Rate Type - Specify the type of hurdle rate. If you select Bank Rate, then choose the bank whose hurdle rate needs to be considered.
Hurdle Rate - Specify the percentage of hurdle rate.
Vendor Disbursement Plan - Choose whether to disburse the invoice amount to a supplier in one go or in stages.
Vendor Bank Auto Mapping - Specify whether to automatically map a supplier with bank.
SLA signing method - Specify the signing method of SLA for both buyer and supplier, choosing from OTP, Digio, and E-sign.
Inbound File Adapter - Select a component that is responsible for receiving invoice data in a desired format from the buyer system.
Outbound File Adapter - Select a component that is responsible for generating invoice data in a desired format.
Auto Process Trigger - Select a trigger point at which the automatic processing of invoices starts.
Periodic for Non Limit - It represents periodic schedule for non-limit processing of invoices.
One time Post Cutoff - It represents a one-time post-cutoff initiation for invoice processing.
Output Files Audit Type - Select the verification process applied to the output files generated by the platform.
Mandate - This option indicates that the verification of the output files is mandatory.
Non Mandate - This option suggests that the verification of the output files is optional or not required.
Postfacto - This option indicates that the verification of the output files occurs after the files have been generated or processed.
Payment Advice Flag - Specify whether to generate and send a payment advice to the bank.
Payment Advice Channel Type - Specify the channel for sharing the payment advices, such as Email or SMS.
Generate Debit Notes - Choose whether to generate debit notes. Debit notes are documents issued by a buyer to a supplier, indicating a debit or reduction in the invoice amount payable by the buyer to the supplier. This option is useful in buyer funding program.
Send Invoice Upload Csv - Choose whether to send invoice acknowledgement file to the buyer.
Weekly Report Generation - Choose whether to generate weekly reports.
Credit Limit Process Type - Select a method used to handle invoices when they exceed the credit limit set for a particular supplier.
Vendor Credit Utilisation Type -
Enable Payable Alert On Mail - Choose whether to send payable alert to the buyer on email.
Escrow Payment Amount Type - Specify the escrow payment amount type.
Full Payment -
Payment Included CredAble Fee -
Only Vendor Amount -
DPO Type - Select the option to adjust the outstanding repayment amount to either include or exclude CredAble charges for transactions conducted against invoices uploaded on the platform. Use this option if DPO is enabled.
Data Separator - Specify the data separator used in payment instruction files. If nothing specified, the default value is considered as comma (,).
Data Separator Generation -
Payment Date Adjustment Calendar - Specify the calendar used to adjust payment dates in the platform.
Bank Calendar - The payment dates are adjusted according to the calendar maintained by the bank.
Corp Calendar - The payment dates are adjusted based on the calendar maintained by the buyer.
Both - The payment dates are adjusted using either the bank calendar or the buyer calendar, providing flexibility in adjusting payment schedules.
None - The payment dates are not adjusted based on any predefined calendar.
Vendor Financing Program - Select the preferred supplier financing program. For illustration purposes, let's assume the Funding Type is Bank.
Gross Pay -
Consider an invoice worth ₹100 that's due in 60 days.
With the Gross Pay program, when the invoice is received on the platform, the bank pays the full payment of ₹100 to the supplier in the subsequent market cycle.
At the same time, the bank collects interest on the ₹100, which is agreed upon beforehand, let's say 8%.
So, when the due date arrives, the buyer pays the bank ₹108 - the original invoice amount plus the ₹8 interest.
Net Pay -
Now, let's consider the Net Pay program and an invoice worth ₹100.
But this time, let's say the supplier offers a 10% discount, so the discounted value of the invoice, or the amount paid to the supplier, is ₹90.
Now, the bank's interest rate is applied to this discounted amount, not the full invoice value. So, at 8% interest, the bank earns ₹7.2.
This means the buyer only needs to pay the bank ₹97.2 at the due date, saving ₹2.8 in the process.
This ₹2.8 saved is what we call arbitrage earned by the buyer.
Major Difference between Gross Pay and Net Pay Programs
In Gross Pay, the bank pays the full invoice amount upfront, while in Net Pay, the bank pays based on a discounted invoice value, resulting in potential savings for the buyer.
Invoice Date/Due Date Tenor -
Invoice Upload By Vendor - Specify whether suppliers are permitted to upload invoices on the platform. If the No option is selected, the buyer uploads the invoices.
Approve invoices Uploaded by Vendor - Specify whether to approve the invoices uploaded by the supplier.
Invoice Soft Copy Mandatory - Choose whether uploading soft copies of invoices is mandatory.
Billable Disbursement Start Time -
Send Reject Feed -
Send Reverse Feed -
Allow Annual Rate in Dynamic Request -
Other Configurations
This includes critical configurations like one-time password (OTP) requirements and email notifications to financial settings such as penalty rates and fund management options.
Note
Separate multiple values with commas, and avoid spaces after commas. For example, anup@cig.in,vita@cig.in.
Batch Alerts Copied to - Enter email address(es) to which batch alerts should be sent.
OTP Required -
Login Otp Required - Enable or disable a OTP requirement for buyer login.
Add Fund Otp Required - Enable or disable a one-time password OTP requirement for adding treasury funds.
Alert Email Post Instruction File Transfer - Select the alert email that is sent after instruction files are transferred.
Risk Users Email - Specify email recipients from the platform team for alerts regarding platform malfunctions. For example, if a payment instruction file fails to generate.
Invoice Alert Internal Mail Receivers - Specify email recipients from the platform team to receive alerts about uploaded invoices.
Bank Reverse Feed Internal Mail Receivers -
Delayed Payment Penalty Rate - Set the percentage of penalty for delayed payments.
Post Approve Payment Reminder Receivers - Specify the recipients of notification emails sent after invoice is approved.
Email Attachment Passcode - Enter the passcode to access and decrypt the email attachment, ensuring that only authorized individuals can view the contents.
Approve Market Otp Required -
Enable Whatsapp Notifications - Specify whether WhatsApp notifications are activated for different activities involved in invoice processing.
Manage Emails -
How to set up a scheduled configuration
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