How AR Avg Days to Pay is calculated

Article ID: 844108
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SUMMARY

This article explains how the 'Avg Days to Pay' field in Accounts Receivable Customer Maintenance screen is calculated and covers partial payments.

1. For information on partial payments see part 1.

2. For information on how the 'Avg Days to Pay' is calculated see part 2.

MORE INFORMATION

Part 1 - Partial payments are not included in the 'Avg Days to Pay' value displayed in Customer Maintenance.

1. The Average Days to Pay calculation computes only on closed documents.

2. The Invoice Document Date is compared to the date of the payment and the calculation of the number of days to pay is made.

3. For example, if an Invoice is entered for $100 with a July 25 document date and a partial payment of $10 is made on August 1, the Average Days to Pay field is not affected. If another payment for $90 is made on August 20, the invoice is now closed and the Average Days to Pay field will reflect 26 days for that invoice.

Part 2 - Verify the Avg Days to Pay calculation using fields in the AR_Balances table.

1. AR_Balances.NbrInvcPaid is the number of invoices paid within the retention period for calculating average days to pay. This field is set during the closing process and when an invoice is paid completely in the Payment Application (08.030.00) dialog box or in the Release AR Batches (08.400.00) process for auto-apply customers.

2. AR_Balances.PaidInvcDays is the total days outstanding for invoices paid within the retention period for average days to pay. This is also updated in closing and is updated by the release process for invoices paid completely in the Payment Application (08.030.00) dialog box or in the Release AR Batches (08.400.00) process for auto-apply customers.

3. The AR_Balances.AvgDayToPay field is calculated from the AR_Balances.PaidInvcDays value divided by the AR_Balances.NbrInvcPaid value.

This article was TechKnowledge Document ID: 11320

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Article ID: 844108 - Last Review: July 8, 2011 - Revision: 3.0
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