Manufacturing Information Solutions

[dawn]

You should be able to use existing QB reports to compute the average collection period (or average days to pay) for a customer (or for all customers).

First, go to the “Sales by Customer Summary” report, from which you can get the sales to the customer for the period, usually a year for this computation.

Then go to the “Customer Balance Detail” report. Filter for the customer, and run the report for the first day of the period (e.g., year) and last day. Obtain the AR balances for the customer on these days. Take the average and divide the average into the customer sales amount, obtain as above. This gives you the account receivable turnover for the customer.

Divide the account receivable turnover number into 365, and you will get the average days to pay (or average collection period) for the customer. You could do the same for the total sales and begriming and ending AR balances for the company (all customers). The overall company days to pay can be used to show how each customer is doing compared to all customers. Richard