The average payment is divided in two categories:
- Average Payment Of AR/AP
- Average Payment Of The Company
Both categories are calculated using the same formula. The only difference is that different transaction groups are used in calculation.
Average Payment of AR/AP:
Defined as the average value of all transactions debiting the AR/AP including check, P. Note and cash transactions.
Average Payment of the Company:
Defined as the average value of all transactions crediting the AR/AP including check, P. Note and cash transactions.
Avarage Payment= ((Due Date 1–Trans. Date 1) *Amount 1)+((Due Date 2–Trans. Date 2) *Amount 2) +....
Total Amount
How is the Average Delay Calculated?
The average delay is divided in two categories:
- Average Delay of AR/AP
- Average Delay of the Company
Both categories are calculated using the same formula. The only difference is that different transaction groups are used in calculation.
Average Delay of AR/AP:
The average delay resulting from AR/AP transactions closing each other. AR/AP transactions are listed below.
Average Delay of the Company:
The average delay resulting from company transactions closing each other. Company transactions are listed below.
Average Delay = ((Payment Date 1-Due Date 1)*Amount 1)((Payment Date 2–Due Date 2)*Amount 2)....
Total Amount