Collecting your AR invoices on time is one of the most important tasks in your Accounts Receivable department. Ensure a low Days Sales Outstanding (DSO) with a minimum of (manual) interventions is one of the top priorities.
Process Minery Receivables view is a purpose-built application that optimizes and automates the collections process using a combination of processes and customer data. The goal is to make every customer interaction more valuable and help businesses to achieve their targets.
Some of the key features available in the current Accounts Receivable (AR) Collection app are listed below.
AR departments exist to ensure that customers pay for the goods and services that are delivered, that the company receives those incoming payments and that the payments are processed quickly and accurately.
AR staff can improve cash control by focusing on the following business objectives:
Because of this reason we created the Receivables views with two main KPI’s. We also calculate the payment risk. In this way you have a clear view on which invoices you should act on.
Preview of our AR product:
DSO (Days Sales Outstanding)
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis.
To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period, and then multiply the result by the number of days in the period being measured.
DDO (Days Deduction Outstanding)
Days Deduction Outstanding (DDO) is a key metric or performance indicator in deduction management that is used to demonstrate how effective a company is at resolving deductions. It refers to the number of days that account receivables practitioners will need to resolve an outstanding deduction. To calculate DDO, the amount of the open deductions is divided by the average value of deductions incurred within a certain period of time.
Likeness to Pay
How likely is it that the customer will pay (quickly). Or what is the chance that the customer will pay quickly if we now send an email, start a call campaign or something else?
We devided the payment risk in three categories:
To calculate the Likeness to Pay we included theses KPI’s.
