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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

The most common formula used is: DSO = (AR Balance/Total Credit Sales) X Days in Period Collection Efficiency Index (CEI) - As mentioned above, DSO is skewed by what is going on in sales. Otherwise, all disputes should be logged in a spreadsheet that tracks the customer, invoice/item number, amount, and status (open/closed).

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Accounts Receivable Credit or Debit: A Comprehensive Guide

Emagia

This aligns with the accounting equation, as an increase in assets (debit) corresponds with an increase in equity through revenue (credit). For example, if a customer owes $500 but pays $600, there is a $100 credit balance. Income Statement: Recording credit sales increases revenue, impacting net income.

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The Role of AI in Mitigating Credit Risk for Credit Managers and Reducing Default Rates

Emagia

This blog discusses how emerging technologies such as artificial intelligence, machine learning, big data, and statistical models can facilitate intelligent credit risk management and diligent payment collections for B2B credit sales operations. FAQs What is Credit Risk Mitigation?

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The Role of AI in Mitigating Credit Risk for Credit Managers and Reducing Default Rates

Emagia

This blog discusses how emerging technologies such as artificial intelligence, machine learning, big data, and statistical models can facilitate intelligent credit risk management and diligent payment collections for B2B credit sales operations. FAQs What is Credit Risk Mitigation?