Q: I’m trying to calculate debtor days at the end of each month to enable analysis of our credit control...
28 August 2012
…The credit terms we give are 30 days from the end of month (so invoice date 15/6 is due on 31/7).
…The credit terms we give are 30 days from the end of month (so invoice date 15/6 is due on 31/7). What sales figure, debtor figure and number of days should I use for the calculation?
Assuming your financial year starts on 1 April and the calculation is made at 31 July, the position is as follows:
• Debtor days at 31 July = say 60 days (...