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TOPIC: Average Days to Pay

Average Days to Pay 13 years 3 weeks ago #267

  • steph
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MYOB Tip:

Average days to pay = the total number of days to pay divided by the number of closed invoices.

For Example:

Your closed invoices report shows 3 closed invoices for a customer.

Invoice 1 was paid 5 days after the invoice date.
Invoice 2 was paid 10 days after the invoice date.
Invoice 3 was paid 15 days after the invoice date.

Total days until paid is 30.

Divide this figure by the number of closed invoices - 30/3 - equals 10 as the average days to pay.

If you enter the payment while you are entering the invoice, using the 'paid today' feature, this invoice would have a 0 days 'til paid. If you combine this with an invoice that was paid 8 days after invoice date - then the average days 'til paid becomes 4. (8 total days divided by 2 closed invoices).

Note:The Average Days to Pay on the Card file record is for the LIFE of the card, not for any date range. Also this does not reflect your given terms. If you offer 30 Days EOM - your "good customers" average could be anywhere from 30 to 60 Days!!
Stephanie Lee
Imprest Business Services
www.imprest.net.au
Facebook: www.facebook.com/Imprest.Bookkeep
"Professional bookkeeping and administration Services"
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