Just curious how Sage caclulates the stats?
I have a report (Days to Pay Average) which shows a lot higher number for the number of days to pay an invoice than the Widget
Just curious how Sage caclulates the stats?
I have a report (Days to Pay Average) which shows a lot higher number for the number of days to pay an invoice than the Widget
I believe this is the basic formula:
Debtor days = (Debtors total / Total sales for the last 12 months) x 365
Hope that helps.
I believe this is the basic formula:
Debtor days = (Debtors total / Total sales for the last 12 months) x 365
Hope that helps.
Thanks Darron
OK - but I can't get anywhere near the value from my dashboard (10.6 days) . By my calculations I'm making it 31.3 days
And I'm assuming you're using Gross Sales rather than Nett ? Not that it should make much difference to the no. of days.
Yeah it is gross it is based on. It's specifically SI and SC transaction types or the nominal code matches the debtors control account and is based on the last calendar 12 months. If you are willing to share your report I could take a look and see if I can spot anything else that might be different.
Is Debtor Days different to Average Days to Pay Sales Invoices. If it is then I may be barking up the wrong tree and there's no need to upload my report.
From Excel
Gross | |
Debtor total | £10,278.00 |
Total sales last 12 months | £119,921.00 |
Debtors / Total Sales | 0.086 |
Multiplied by 365 | 31.28 |
Yes, very different. Average days to pay would normally be something like:
Average days to pay = total number of individual days to pay each invoice / number of invoices
I'd expect this generate something potentially quite different the debtor days:
Debtor days = (Debtors total / Total sales for the last 12 months) x 365
Thanks - As I guessed .
However, my spreadsheet example above based on your calculation criteria calculates my Debtor days as 31 rather than 10 from the widget..... My Debtor total = what is outstanding right now but maybe there is some secret way of analysing that that I can't get at,.
*Community Hub is the new name for Sage City