Understanding Average Days to Pay.
When you select Average days to pay, Sage 50 does the following:
- Performs calculations on your customers' paid invoices to determine the average number of days for each customer to pay invoices. How is average days to pay calculated?
- Calculates the due date for invoices on the Cash Flow Manager based on this calculated average days to pay.
Give me an example
A customer has Net 30 days for their terms, but Sage 50 calculates the average number of days to pay for that customer at 20 days. If you invoice that customer on March 1, 2011, the Cash Flow Manager will show the expected due date for this invoice as March 21, 2011. If you select the actual transaction date, Sage 50 will show the expected due date as March 31, 2011.