monthly debtor days

monthly debtor days

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Hello,

some members of the team get targeted on their debtor days. I have to calculate how much cash they have to collect each month to reach debtor days of 40, 45 or 50 days.

Can someone help me with an excel formula?

thanks
Amanda Hoxha

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By keith.donovan
14th Nov 2008 16:35

Looks OK
Amanda, your formulas assume that sales are at the same level each month, so you set targets of all the current >30 day amounts and the appropriate part of the current <30 day amounts. On that assumption, your formulas will give a sensible approximation. If that information is all that you have access to, I don't see that you could do any better.

Did you want something more that that?

The target doesn't seem to be the best one that could be set, since it ignores the ageing profile (problem debts could get older and older with targets still being met by collecting recent debts). However this may be known not to be a problem or subject to separate monitoring.

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By Amplicon
03rd Nov 2008 16:49

debtor days
The debtor days as such aren't calculated.

At the moment their target gets calculated like this:

target of 40 days:
d1+(c1/30*20)

target of 45 days:
d1+(c1/30*15)

target of 50 days:
d1+(c1/30*10)

d1 are the debtors older than 30 days
c1 are the debtors up to 30 days

Is this right?

Thanks


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By User deleted
03rd Nov 2008 11:45

dedpends - more info
Amanda

You will need to tell us how you calculate Dr days sothat we can help you, there are several options.

Liam

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