Your Virtual Credit Manager

OCTOBER 2, 2024

If you charged shipping costs, but your agreement is to bill a “delivered” price, the customer will deduct the freight from the face amount of the invoice. Match unapplied payments and unapplied credit memos to open invoices, deductions, and debit memos. No seriously past due invoices and no “Clutter.”

Past Due Invoices 130

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

AUGUST 29, 2023

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Abrigo

JUNE 9, 2016

One simple exercise for exploring this is to pick any client who is currently receiving only one service from the firm but with whom staff typically enjoy working.

Deductions 60

Deductions Current Receivables 60

Gaviti

APRIL 3, 2024

Best Possible DSO Formula The formula for Best Possible DSO is: (Current Receivables x Number of Days in Period) ÷ Credit Sales for Period 7 Strategies to Reduce DSO Since DSO reduction is such an important element of your accounting operations, many companies turn to tools such as DSO reduction software to assist them.

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Gaviti

JANUARY 2, 2024

Collection Effectiveness Index (CEI) CEI compares receives collected in a given time period against the receivables available in that same period. Similar to DSO, this cash application KPI offers a broad measure of how effective your collection efforts are.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent Days Sales Outstanding DSO 52