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The Dashboard uses graphs to provide a visual representation
of the collection Key Performance Indicators (KPI) for your organization.
The Dashboard can include alert messages for each KPI. The graphs and
alerts shown in the Dashboard enable collectors and managers to isolate
areas for performance improvement and to
identify best business practices.
eCredit provides you with a standard set of KPIs. You
can configure any of the following for a KPI:
The minimum and maximum
values that trigger an alert message to users viewing the Dashboard. You
can enter the minimum and maximum values, and the alert that users see
on the screen if the KPI falls outside this range. The display label
used for the KPI graph in the Dashboard module. The graph type for
the KPI. You can select pie, bar, or line for the graph type. The page number and
display order for the KPI graph. eCredit can display up to 9 pages for
KPIs, and can display up to 6 KPIs per page.
Formulas for Key Performance Indicators
The following table lists the calculations for the standard
KPIs.
|
Key Performance Indicator (KPI) |
Description |
|
Days Sales Outstanding (DSO) |
Measures the average number of days required to close
invoices weighted by the collected amounts of those invoices. This metric
is an indication of the time required to collect on receivables.
The formula is:
Days Sales Outstanding =
(Total
Receivables * Period Days)/MTD Sales |
|
Collection Effectiveness Index (CEI) |
Uses the following formula to measure the effectiveness
of collectors to receive payment against outstanding invoices:
CEI = (((Open Receivables - Total Receivables) + MTD
Sales) / ((Open Receivables + Current Receivables) + MTD Sales) |
|
Best DSO |
All the outstanding receivables in the current bucket
calculated using the following formula:
Best DSO = (Current Receivables * Period Days) / MTD
Sales |
|
Average Days to Pay (ADP) |
The average number of days to pay for all Invoices.
ADP is
calculated using the following formula:
Average Days to Pay = (MTD Days Pay / MTD Payments) |
|
Days Beyond Terms |
Amount of days beyond the terms calculated as:
Days Beyond Terms = (MTD Days Late / MTD Payments) |
|
Average Days Delinquent |
Difference between the DSO and the Best Possible DSO
calculated using the following formula:
Average Days Delinquent = (DSO
- Best DSO) |
|
Aging Buckets |
The aging buckets as defined in the Aging Bucket Setup
feature. An extra aging bucket is added to the aging buckets you define.
This extra bucket covers all receivables not included in the last aging
bucket. |
The KPI formulas use the following definitions:
Period Days: The
number of days your eCredit Business Administrator has defined for collection
periods using the Collection Period feature. Collection periods can be
set up to be quarterly or monthly. Total receivables
is calculated as the total accounts receivable as of the end date defined
in your collection period setup Current receivables
is the current receivables as of the end date specified in your collection
period setup. Period opening receivables
is the opening receivables for the period defined by your collection period
setup. Period to date sales
is the revenue to date for the period defined in your collection period
setup. Days to Pay = Payment
Date - Invoice Date Days Late = Payment
Date - Due Date Days Pay Amount =
Days to Pay * Payment Amount Days Late Amount
= Days Late * Payment Amount | 