A 45-day payment term is a utility industry standard. Suppliers that regularly
do business with utilities should be familiar with these payment terms.
Option 1 – Standing Early Payment Option
Currently an Ariba member?
Not an Ariba member?
Option 2 – On Demand Early Payment Option
For inquiries related to:
eInvoicing through the Ariba Network: email@example.com
Questions about POs or Contracts: firstname.lastname@example.org
A specific invoice and/or invoice discount:
The Accelerated Payment Program is part of AEP's ongoing initiative to electronically
transact with our suppliers. By making our processes more efficient, we are now
able to offer our suppliers earlier payments. The Accelerated Payment Program delivers
faster invoice payment in exchange for an agreed upon discount deducted from the
gross invoice amount.
Some of the benefits to participating in AEP's Accelerated Payment Program include:
Approved invoices are those which have passed all review processes (mechanized or
manual) and been authorized for payment processing.
The discount is calculated by determining the number of days between when the payment
is initiated and the net due date of the invoice. The system then applies a discount
in accordance with the discount terms agreed upon. This discount may be a set percentage
of the face value or a sliding scale discount, depending on the accelerated payment
offer that is accepted. For example, an accepted accelerated payment offer with
terms of 2% 10 net 50 would equate to a 2% discount as long as the invoice was paid
on or before the 10th day after the invoice was received.
If you accept a standing accelerated payment offer without a sliding scale, then
it is fixed until such a time that you and AEP agree upon new discount terms. If
you accept a standing term accelerated payment with a sliding scale, the discount
amount is prorated depending on the date of the payment.
If you opt to accept Dynamic Accelerated Payment offers, then by nature the accelerated
payment offer is dynamic and may change with the specific invoice opportunity. With
this type of offer, you have the opportunity to review accelerated payment offers
for each invoice and must accept them before accelerated payment is initiated.
Standing Accelerated Payment offers apply to all invoices that you submit that are
approved to be paid within the parameters of the agreed upon terms. If you have
agreed to a Standing Accelerated Payment term, Accelerated payment will be executed
automatically and immediately upon invoice approval without any further intervention
by you or AEP.
Dynamic Accelerated Payment offers are ad hoc offers initiated by AEP that apply
to a specific invoice or group of invoices. Once the dynamic offer is made, the
supplier is notified via email and an alert on the Ariba Network. The supplier must
then review and accept the offer online within the Ariba Network account at which
point the Accelerated payment is initiated. This review can be done manually or
through automated acceptance rules defined in the supplier Ariba Network account.
Yes. If there are certain calendar dates and/or accelerated payment terms that you
would always like to accept or reject, the Ariba Network enables you to define those
rules within your Ariba account. Once rules are defined, only those accelerated
payment offers falling outside of those parameters will need to be manually reviewed
by you in order to take effect.
Nothing. If you do not review or choose not to take action on an accelerated payment
offer, whether standing or dynamic, invoices will be paid according to each invoice's
Yes. This is a great benefit for our suppliers of AEP's e-Invoicing initiative.
If you are registered and send your invoices to AEP through the Ariba Network, then
your invoice status and settlement date are displayed within your account for your
convenience. Additionally, you can use Ariba's Cash Flow Optimizer tool to identify
and define which invoices will be paid when to meet specific cash flow needs you
Yes. AEP may make a Dynamic Accelerated Payment offer for a particular invoice or
set of invoices to you which you can review and choose to accept or not based on
your business needs at the moment.
A sliding scale discount is an accelerated payment term where the amount of the
invoice discount decreases the closer the accelerated payment comes to the net term
due date. A sliding scale discount takes into account the variable timing of invoice
approval and enables you to receive early payment regardless of when the invoice
is approved to pay.
For example, with a standard 2%/10 net 30 accelerated payment term, you would give
AEP a 2% discount in order to be paid 20 days Accelerated. If the invoice is approved
on day 5, AEP would wait until day 10 to pay you. Alternatively, if the invoice
is not approved until day 15, AEP would wait to pay you until the full 30 day term
of that invoice, thus costing you valuable accelerated cash flow.
With a sliding scale applied to your accelerated payment term, you would receive
early payment on whatever day the invoice is approved with the discount amount sliding
up or down depending on how quickly payment accelerated to you. Using the above
examples for a 2%/10 net 30 invoice term, if the invoice is approved on day 5, payment
would be executed on day 5 for a 2.5% discount. Alternatively if the invoice is
approved on day 15, an Accelerated payment will still be executed immediately, but
the discount will be reduced to 1.5% of the invoice value.
In order to participate in AEP's Accelerated Payment Program, you must be setup
to receive an ACH credit electronically. Accelerated payments will not be made by
check as the time needed for the check to be processed, mailed and settled would
greatly limit the opportunity for Accelerated payment to be received in a timely
manner. Currently, over 85% of our vendor payments are made by ACH credit. An email
is sent the day prior to receipt of funds listing the invoice number (s) and dollar
amount (s) being paid.
Use AEP's Financial
EDI authorization form. The return of the completed form will provide for
set-up of ACH credit as the payment method and enable your company to take advantage
of the accelerated payment program.
eInvoicing is the process of receiving POs, confirming orders and submitting invoices
electronically via the Ariba Network. Invoices automatically post within PeopleSoft
and are released for payment according to payment terms. Suppliers receive order
notifications, transaction histories and full audit trails via the Ariba Network.
The Ariba Network is the world's largest trading partner community, home to more
than 730,000 companies, including more than half of the Fortune 500. Ariba provides
fast transmission, tracking and processing of orders and invoices.
The Ariba Network has been selected by AEP as the preferred method for sending purchase
orders and receiving PO invoices.
Suppliers will be encouraged to join the network but not required. Not all suppliers
will be contacted to join the network.
Suppliers will be able to see the following statuses for invoices once received
and/or processed in PeopleSoft:
Participation in the program will be an evaluation factor that AEP considers when
selecting suppliers or reviewing suppliers for renewal.
Common reasons for delayed payment include:
The invoice has not been received by AEP’s Accounts Payable Department.
The invoice is missing information or contains inaccurate information.
The invoice price does not match the prenegotiated price on the Purchase Order.
The invoice is not approved by an AEP representative.
Issues when receiving goods, including:
The ordered material wasn’t delivered to the correct location.
The quantity of goods received does not match the quantity of goods invoiced.
Delays in the routing of the packing list/shipping documents from outlying (remote)
locations to the main inventory (receipting) location.
The shipment is lost, damaged or incorrect.
Material is shipped against a cancelled or expired Purchase Order.
In certain instances, AEP has received approval from the tax authority to
pay sales tax directly to the specific state and/or locality. In such instances,
AEP will not pay sales tax through its vendors (even though the invoice might include
sales tax). See direct pay permit information.
If the short pay was not related to AEP’s “direct pay”
arrangement (as described in Question 2), the short payment could have been the
result of a discrepancy between the invoiced price and the pre-arranged price outlined
in the original Purchase Order. In that case, AEP’s Accounts Payable Department
will contact the appropriate buyer to investigate the discrepancy. To resolve this
issue, the buyer can either revise the Purchase Order to reflect the correct price
or advise the Accounts Payable Department to short pay the invoice.
When the Purchase Order is initiated it outlines the Free On Board (FOB)
and other shipping terms. If the vendor does not follow the terms outlined on the
Purchase Order, AEP’s buyer may advise AEP’s Accounts Payable Department
to deduct all non-approved freight charges from the payment. If a “collect”
freight bill was already paid directly to the carrier by AEP for a particular shipment,
the buyer also may advise the Accounts Payable Department to deduct from the payment
any added freight charges for that shipment.
All telephone inquiries should be directed to AEP’s Accounts Payable
Call Center at (330) 438-7102. In the event the Call Center cannot provide payment
information, the attendant will direct the inquiry to a team member for investigation