Use the A/R Trending Settings to establish a range for when to consider a customer's account is in trouble. A customer's status can be green, yellow, or red. By default, a customer's status is green. Set the trending parameters to indicate when a customer's status should be set to yellow or red. If one of the criteria is met, the customer's status changes. The status values and colors display on the A/R Collection Queue.
Note: The system uses the parameters for all customers. You cannot apply different criteria to different customers.
To set A/R trending parameters:
From the A/R menu, select A/R Collection Queue to display the A/R Collection Queue.
From the Options menu, select Trend Status Settings to display the A/R Trending Settings.
Note: You do not have to populate the queue to access the A/R Trending Settings.
Enter ranges in the following fields to indicate when a customer should enter yellow or red status:
Field | Description |
Sales to A/R Percentage | Ratio between the difference in sales month to month divided by the difference in A/R month to month. Enter the percentage by which, if the customer's ratio has dropped, you want the customer to be in a yellow or red status. |
A/R Turns | The number of days it takes to turn the current A/R balance. The calculation reads: A/R Turns (in days) = Total Outstanding A/R / (Last Month’s Sales / 30) Enter the number of turns at which you want the customer to be in a yellow or red status. |
Invoice dollars older than average days to pay | The dollar total of invoices dollars due that is longer than Average Days to Pay for this customer. If the customer normally pays on average every 45 days but they currently have $10,000 in invoices over 60 days then they have $10,000 in A/R that is older (15 days older) than it usually gets - this customer is breaking their normal behavior. Enter the number of dollars overdue at which you want the customer to be in a yellow or red status. |
For example, you have your A/R Turns set to Yellow if the customer is greater than 4 and Red if a customer is greater than 6. Any customer that has an A/R turn of 5 or 6 is in Yellow status.
Click View Log to see how the A/R Trend Settings have been changed.
Click Save to keep the current settings or any changes and return to the A/R Collection Queue.
See Also: