Harmonization Group
What is it?
The Harmonization Group allows us to add or delete multiple different Harmonization Groups to our payment terms. Harmonization is a way of rounding the values in reference to a defined set of possible payment terms.
Please note:
Harmonization can be set at the parent, supplier or spend file level according to our preferences. In some cases, this can sometimes move payment terms considerably.
The platform also allows us to round our payment terms always up, always down, or to the nearest group. For example if the platform calculates a term Opportunity of 62 days but the next Harmonization Group is at 90 days, if the preference is to round up, the Platform will show an Opportunity of 90 days.
Why is it important?
Harmonization of payment terms allows us to streamline and simplify our payment terms, and it gives us an opportunity to optimize our terms across all our spend and suppliers.
