Understanding Average Days to Pay.

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, 2018, the Cash Flow Manager will show the expected due date for this invoice as March 21, 2018. If you select the actual transaction date, Sage 50 will show the expected due date as March 31, 2018.

It takes the total number of days to pay all invoices in the system and divides by the total number of invoices. For example, a customer had five invoices and they paid the invoices in 28, 22, 15, 35, and 20 days. Sage 50 will add these five numbers and divide by 5, giving an average days to pay of 24 days.

Average days to pay is recalculated for a customer whenever an invoice for that customer is closed.

When the invoice has been paid in full, either with Receipts or Credit Memos, its status is changed to closed.