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Savings Calculator
 

Step 1  -  Establishing Payment Terms

The table below allows you to establish multiple payment terms associated with carrier discounts. To create a Payment Grid, enter the number of days before payment, and the corresponding discount required for faster payment. In the example below, the shipper requires a 2.00% discount for 1 day pay, a 1.67% discount for 5 day pay, and a 0.00% discount for 30 day pay. Epay Manager is designed to allow your company to customize payment terms and discounts that satisfy your company's internal rate of return. The system requires the payer to offer standard non-discounted terms (0.00% discount). Note: All data fields must be populated to achieve optimal results.


 Create a Payment Grid
  Days to Pay   Carrier Discount
Days %
Days %
Days %
Days %
Days %
Days %
 Sample Grid
  Days to Pay   Carrier Discount
1 Days
2.00 %
5 Days
1.67 %
10 Days
1.33 %
15 Days
1.00 %
20 Days
0.67 %
30 Days
0.00 %
 

Step 2  -  Calculate Weekly Transactions

Next, enter the number of transactions your company completes each week, the average payment to the carrier per transaction, and the percentage of the Epay Manager transaction fee your company will pay. Note: Click on the transaction information description for definitions.

 Weekly Transaction Information
  Transaction Information   Values
Transactions Per Week
 
Average Payment to Carrier
$
Fee per Transaction *
$
- Payer Share
%
- Payee Share
%
Average A/P Processing Cost
$
A/P Processing Savings
%
 Epay Manager Fee Schedule
  Length of Contract   Fee per Transaction
1 Years
$ 3.00
2 Years
$ 3.00
3 Years
$ 3.00

* The transaction fee may be split between parties.
 

Step 3  -  Calculate Expected Savings

Calculate the expected savings for your company.
 
 

Definitions

Transactions per Week - Your company's average number of weekly shipments.

Average Payment to Carrier - The average cost of a carrier invoice per shipment.

Fee per Transaction - The Epay Manager transaction fee, based on the Epay Manager fee schedule.

Payer Share - The portion of the Epay Manager transaction fee that the Payer will pay.

Payee Share - The portion of the Epay Manager transaction fee that the Payee will pay.

Average A/P Processing Cost - The Average A/P Processing Cost is your company's current accounts payable processing cost. This cost includes all the employee, overhead and material costs required to process an accounts payable transaction. Independent organizations have shown these costs to range from $12 to $50 per transaction. The Institute of Management & Administration (IOMA) places this cost at $28.67 per transaction.

The Epay Manager Savings Calculator assumes this cost to be $12, the most conservative estimate available.