This appendix lists the preconfigured metrics available in Oracle Advanced Collections.
This appendix covers the following topics:
Oracle Advanced Collections provides the preconfigured metrics shown in the following table. You can run each metric at the customer, account, or bill to operational data level.
| Metric | Description |
|---|---|
| Weighted Average Days Paid | Weighted Average Days Paid (WAP) is the number of days a customer takes to make payments (Days Late + Terms). Date Paid - Invoice Date The average is weighted by the payment amount and assumes that a $10000 payment is more significant than $100. WAP is calculated by adding Weighted Average Terms and Weighted Average Days Late: days allowed + days late = days taken. |
| Weighted Average Days Late | Average number of days a payment was late, weighted by dollar amount. The amount of the closed item is used to weight the days. * Assumes that a $100,000 invoice that is 10 days late is more serious than a $10 invoice paid 10 days late. Calculation: sum (item amount * days late) / sum (item amount). The item amount is drawn from the first instance of item activity that has the same entry type as the closed item. Days late is the number of days between the due date and the accounting date of the item activity that closed the item. |
| Weighted Average Terms | Calculates the average number of days allowed for a customer before payment is due, weighted according to the item amount. Some invoices may be due in 20 days, other in 30 or 40. The Weighted Average Days Late calculation tells you that the customer pays, on average, 5 days late. But that number is much more meaningful when you know that the customer had an average of 25 days to make payments. |
| Average Days Late | Days late is calculated as the number of days between the due date and the accounting date of the entry that closed the item. Avg Days Late is calculated as sum (days late) / number of items. |
| Conventional Days Sales Outstanding (DSO) * | Multiply the customers current A/R Balance by 30 and divide by prior period sales. At a specific point-in-time, measure indicated how long it takes to convert receivables to cash. Interprets trends in receivable turnover. * You must set your DSO calculations based on number of days in your accounting month - usually 28 or 30 days. |
| True DSO | The accurate and actual number of days credit sales are unpaid. This is a complicated formula as you have to tie every invoice back to net sales for the month in which the invoice originated. Formula: True DSO per invoice = Number of days from invoice date to reporting date * (invoice amount / net credit sales for the month in which sale occurred) The sum of True DSO for all open invoices = True DSO per total accounts receivable. |
| Collection Effectiveness Index (CEI) | This percentage expresses the effectiveness of collection efforts over time. The closer to 100%, the more effective the collection efforts. It is a measure of the quality of collection of receivables, not of time. CEI accurately measures collection effectiveness (amounts that are collectible and are actually collected). Used to evaluate individuals, subgroups, and overall groups. Formula: [Beginning Receivables + (Credit Sales / N) - Ending Total Receivables] / [Beginning Receivables + (Credit Sales / N) - Ending Current Receivables] x 100. *N = Number of Months |
| NSF History Amount | Dollar amount of NSF checks for past twelve months. |
| NSF History Count | Number of NSF checks for past twelve months. |
| Deductions | Number and Dollar amount of deductions created each accounting period. |
| Sales | Actual Credit Sales billed in the past twelve months. |
| Credit Limit | The current credit amount available for a customer. |
| High Credit YTD | The highest credit limit for a customer in the past 12 months. |